Smart Book Chapter 4 Accounting 2110

Which of the statements below is correct regarding the difference between a temporary account and a permanent account?

A temporary account will not appear on a post-closing trial balance.

Describe an unclassified balance sheet.

An unclassified balance sheet is one whose items are broadly grouped into assets, liabilities, and equity.

Choose the statement below that explains what "closing" means.

Closing means to reset an account balance to zero.

Define "current" as it applies to assets and liabilities on a classified balance sheet.

Current items are those expected to come due within one year or the company's operating cycle, whichever is longer.

Select the statement below that describes a post-closing trial balance.

It is a listing of all permanent accounts and their balances after closing.

Identify which of the accounts below would be classified as a current asset. (Check all that apply.)

Office supplies Cash Prepaid rent Accounts receivable

Which statements below are true regarding permanent and temporary accounts?

Permanent accounts are reported on the balance sheet. Temporary accounts have a balance for one period only. Most temporary accounts are reported on the income statement. Permanent accounts will appear on a post-closing trial balance. Owner, Capital is a permanent account, but Owner, Withdrawals is a temporary account.

A classified balance sheet has several categories for assets and liabilities including: (Check all that apply.)

Plant assets. Current assets. Long-term investments. Noncurrent (long-term) liabilities.

Which of the following lists steps of the accounting cycle in the correct order (note that not all steps are listed)?

Trial balance, Adjusting journal entries, Post-closing trial balance.

Current assets are:

cash and other resources that are expected to be sold, collected or used within one year

A classified balance sheet can be described as a balance sheet that: (Check all that apply.)

lists current assets in the order of how quickly they can be converted to cash. organizes assets and liabilities into important subgroups.