Chap 13

Identify which accounts would appear in a post-closing trial balance:

accounts receivable equipment merchandise inventory

identify the temporary accounts below:

advertising expense drawing interest income salaries expense

An adjusting entry for prepaid expenses will include a credit to a(n) _________ account.

asset

Identify which accounts would appear in a post-closing trial balance:

cash accounts payable owner's capital

A balance sheet that divides the various assets and liabilities into groups, such as current assets and current liabilities, is called a

classified

A balance sheet that divides the various assets and liabilities into groups, such as current assets and current liabilities, is called a ________ balance sheet.

classified

A format by which revenues and expenses on the income statement, and assets and liabilities on the balance sheet, are divided into groups of similar accounts and a subtotal is given for each group is called a

classified

A format by which revenues and expenses on the income statement, and assets and liabilities on the balance sheet, are divided into groups of similar accounts and a subtotal is given for each group is called a _______ financial statement.

classified

A format by which revenues and expenses on the income statement, and assets and liabilities on the balance sheet, are divided into groups of similar accounts and a subtotal is given for each group is called a____________ financial statment

classified

An adjusting entry to record depreciation expense will include a credit to a(n) _________ account.

contra asset

After the first two closing entries are made, the income summary account has a $2,500 debit balance. The entry to close the income summary account will include which of the following entries:

credit to income summary debit to the owner's capital account

Working Capital is calculated by taking:

current assets - current liabilities

The current ratio is computed by taking:

current assets / current liabilities

A company has a current ratio 1.40. This means that it has $1.40 of current assets for every dollarof __________

current liabilities

A ratio that calculates the amount of dollars of current assets the company has for every dollar of current liabilities it has is called the

current ratio

After the first two closing entries are made, the income summary account has a $6,000 credit balance. The entry to close the income summary account will include which of the following entries:

debit to income summary credit to the owner's capital account

After the first two closing entries are made, the income summary account has a $1,500 credit balance. The entry to close the income summary account will include a (debit/credit)__________ to the income summary account and a _____________ to the owner's capital account.

debit, credit

To calculate the current ratio, take current assets________ current liabilities

divided by

The gross profit percentage calculates the amount of:

gross profit from each sales dollar

The ratio that reveals the amount of gross profit from each sales dollar is called the ______.

gross profit percentage

which of the following steps is last in the accounting cycle:

interpret the financial information.

The ratio that shows the number of times inventory is replaced during the accounting period is called

inventory turnover

The ratio that shows the number of times inventory is replaced during the accounting period is called ___________.

inventory turnover

To compute working capital, take current assets _____ current liabilities.

less

An income statement that provides subtotals for cost of goods sold, selling expenses, and general and administrative expenses is called a

multi -step income statement

A type of income statement on which several subtotals are computed before the net income is calculated, such as gross profit, is called a _______ income statement.

multiple-step

Gross Profit Percentage is calculated by taking gross profit divided by

net sales

The financial statement that reports changes in the owner's financial interest during the period is the statement of

owner's equity

Working Capital is measure of a firm's ability to:

pay its current obligations

Working capital is a measure of a firm's ability to:

pay its current obligations

Which of the following steps of the accounting cycle comes first from the list below:

prepare financial statments

Entries that are made to reverse the effects of certain adjustments are called________ entries

reversing

Entries that are made to reverse the effects of certain adjustments are called ______ entries.

reversing entries

Identify the temporary accounts below:

sales rent expense drawing purchases

An income statement that provides subtotals for cost of goods sold, selling expenses, and general and administrative expenses is called a______- step income statement.

single (total revenue- total expenses = net income)

A type of income statement where only one computation is needed to determine the net income (total revenue - total expenses = net income) is called a _________ income statement.

single-step

The financial statement that reports the changes that occurred in the owner's financial interest during the period is called the ___________.

statement of owner's equity

A measure of a firm's ability to pay its current obligations, calculated by taking current assets less current liabilities, is called:

working capital