Question : 8) Assets that expected to be converted to cash, sold, : 1212590

8) Assets that are expected to be converted to cash, sold, or consumed during the next 12 months or within the business’s normal operating cycle if longer than a year are referred to as:

A) permanent assets.

B) quick assets.

C) current assets.

D) cash equivalent assets.

 

9) The time span during which cash is used to acquire goods and services, and these goods and services are sold to customers, who in turn pay for their purchases with cash, is called the:

A) accounting cycle.

B) cash-to-cash cycle.

C) liquidity cycle.

D) operating cycle.

10) Prepaid insurance would appear on a classified balance sheet as a(n):

A) long-term liability.

B) long-term asset.

C) current asset.

D) other asset.

 

11) All of the following are current assets except:

A) cash.

B) accounts receivable.

C) buildings.

D) prepaid rent.

 

12) All of the following are property, plant and equipment except:

A) office supplies.

B) land.

C) buildings.

D) equipment.

13) Debts that are due to be paid within one year or within the entity’s operating cycle, whichever is longer, are called:

A) current liabilities.

B) liquid liabilities.

C) quick liabilities.

D) deferred liabilities.

 

Table 4-2

 

The ledger accounts for Alice’s Rentals include the following normal balances as of December 31, 2014:

 

Accumulated amortization$ 2,000

Cash 7,300

Equipment15,000

Alice Normanson, Capital 9,300

Alice Normanson, Withdrawals 2,200

Prepaid rent  3,600

Accounts payable7,800

Supplies    1,200

Unearned revenue1,600

Notes payable (due Dec. 31, 2018)7,500

 

14) Referring to Table 4-2, what are the total current assets and total assets for Alice’s Rentals?

A) $12,100 and $25,100

B) $8,500 and $25,100

C) $8,500 and $21,500

D) $12,100 and $27,100

15) Referring to Table 4-2, what are the total current liabilities and total liabilities for Alice’s Rentals?

A) $7,800 and $16,900

B) $9,400 and $16,900

C) $7,800 and $15,300

D) $9,400 and $18,900

 

Table 4-4

 

Selected accounting data as at December 31, 2014 for Huma Delivery follows:

 

Cash$11,000

Accounts payable8,000

Accounts receivable5,500

Salary payable6,300

Supplies1,200

Unearned revenue2,200

Prepaid rent4,600

Mortgage payable (due 2018)5,500

Equipment22,000

J. Huma, Capital19,900

Accum. amort.-equipment6,100

Service revenue29,000

Salary expense8,000

Furniture12,000

Accum. amort.-furniture4,000

Amortization expense6,800

Utilities expense4,300

Rent expense5,600

 

16) Referring to Table 4-4, current assets and total assets are:

A) $17,700 and $46,200, respectively

B) $17,700 and $41,600, respectively

C) $22,300 and $46,200, respectively

D) $22,300 and $56,300, respectively

17) Referring to Table 4-4, current liabilities and total liabilities are:

A) $14,300 and $5,500 respectively

B) $14,300 and $19,800 respectively

C) $14,300 and $22,000 respectively

D) $16,500 and $22,000 respectively