chapter four

Revenues and expenses may be transferred to the __________ account before their final transfer into the Retained Earnings account. A) Net Income B) Income Summary C) Dividends D) Assets

income summary

Which of the following is a measure of how quickly an item can be converted to cash? A) Debt ratio B) Return on assets ratio C) Liquidity D) Accounting cycle

liquidity

The time span during which cash is paid for goods and services, which are then sold to customers from whom the business collects cash, is called the _____. A) production time B) operating cycle C) accounting cycle D) sales time

operating cycle

A balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) _____________. A) report form B) unclassified form C) account form D) audited form

report form

Which of the following statements is true of the worksheet? A) The worksheet is a tool that takes place of financial statement preparation. B) The worksheet is a document used to summarize data to prepare financial statements. C) The worksheet is a financial statement issued to the public to communicate the financial results of a company. D) The worksheet is type of journal.

the worksheet is a document used to summarize data to prepare financial statements

The following contains information from the records of Bourne Engineers and Architects. Bourne Engineers and Architects Selected Financial Information December 31, 2019 Current Assets $80,000 Current Liabilities $42, 000 Long-Term Assets $98,000 Long-Term Liabilities $65,000 Total Revenues $55,000 Total Expenses $32,000 Calculate the current ratio. (Round your answer to two decimal places.) A) 1.51 B) 2.25 C) 0.59 D) 1.90 E) None of the above.

1.90

The balances of select accounts of Donovan, Inc. ad of December 21, 2018 are given below. Building $120,000 Cash $9,000 Office Supplies $1,000 Furniture (long-term) $4,000 Prepaid Insurance $600 Accumulated Depreciation-Furniture $2,000 Land $33,000 Accumulated Depreciation-Building $4,000 Accounts Receivable $2,000 What amount of total long-term assets would be shown on the balance sheet at December 31, 2018? A) $120,000 B) $151,000 C) $153,000 D) $157,000 E) None of the above.

151,000

The financial statements are prepared from the __________. A) adjusted trial balance B) chart of accounts C) statement of retained earnings D) unadjusted trial balance

adjusted trial balance

Which financial statement is prepared last? A) income statement B) balance sheet C) statement of retained earnings D) The financial statements can prepared in any order.

balance sheet

Which of the following accounts will be included in a post-closing trial balance? A) Dividends B) Salaries Expense C) Common stock D) Supplies Expense

common stock