Accounting Ch 4.1

Property, plant, and equipment are ________. A. also called fixed or plant assets B. either tangible or intangible assets C. presented in order of the category name, with Land being presented last D. easily converted to cash

A. also called fixed or plant assets

Salaries Payable, Accounts Payable, and Unearned Revenue are examples of ________. A. current liabilities B.long−term liabilities C.short−term investments

A. current liabilities

Notes Payable due within two years are classified as ________. A. long−term liabilities B. current liabilities C. long−term assets D. current assets

A. long−term liabilities

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.operating cycle B. accounting cycle C. production time D. sales time

A. operating cycle

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

B. Liquidity

The financial statement that reports assets, liabilities, and stockholders' equity as of the last day of the period is called the ________. A. income statement B. balance sheet C. unadjusted trial balance D. statement of retained earnings

B. balance sheet

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

B. balance sheet

Under which of the following categories would bonds held as an investment for more than a year appear? A.Long−term liabilities B.Long−term assets C. Current liabilities D. Current assets

B.Long−term assets

Which of the following is a current asset that is expected to be converted to cash, sold, or consumed during the next year (or the normal operating cycle, if longer)? A. Equipment B. Building C. Accounts Receivable D. Land

C. Accounts Receivable

Buildings, land, and equipment are classified as ________. A. current assets B. long−term liabilities C. long−term assets D. current liabilities

C. long−term assets

Which of the following is an example of an intangible asset? A. Property B. Plant C. Equipment D. Copyright

D. Copyright

Under which of the following categories would Accounts Payable appear? A. Current assets B. Long−term assets C. Long−term liabilities D. Current liabilities

D. Current liabilities

Which of the following is not a balance sheet account? A. Prepaid Rent B. Accumulated Depreciation minus− Building C. Unearned Revenue D. Dividends

D. Dividends

Which of the following statements regarding intangible assets is incorrect? A. Intangible assets are valuable because of the special rights they carry. B. Intangible assets include the exclusive right to produce or sell an invention. C. Intangible assets have no physical form. D. Intangible assets are not reported on the balance sheet

D. Intangible assets are not reported on the balance sheet

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

D. adjusted trial balance

Patents, copyrights, and trademarks are examples of ________. A.long−term investments B.short−term investments C. fixed assets D. intangible assets

D. intangible assets

All assets that will not be converted to cash or used up within the business's operating cycle or one year, whichever is greater, are called ________. A. current assets B. current liabilities C. fully depreciated assets D. long−term assets

D. long−term assets