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
