Question : 83.A classified balance sheet: A.Measures a company’s ability to pay its : 1258753

 

 

83.A classified balance sheet:   

A.Measures a company’s ability to pay its bills on time.

 

Organizes assets and liabilities into important subgroups that provide more information.

 

C.Broadly groups items into assets, liabilities and equity.

 

D.Reports operating, investing, and financing activities.

 

E.Reports the effect of profit and dividends on retained earnings.

 

 

 

 

84.Two common subgroups for liabilities on a classified balance sheet are:   

A.Current liabilities and intangible liabilities.

 

B.Present liabilities and operating liabilities.

 

C.General liabilities and specific liabilities.

 

D.Intangible liabilities and long-term liabilities.

 

Current liabilities and long-term liabilities.

 

 

 

 

85.Which of the following is classified as current assets?    

A.Office equipment.

 

B.Patent.

 

C.Unearned revenue.

 

Office supplies.

 

E.Land.

 

 

 

 

86.The current ratio:    

A.Is used to measure a company’s profitability.

 

B.Is used to measure the relation between assets and long-term debt.

 

C.Measures the effect of operating income on profit.

 

Is used to help assess a company’s ability to pay its debts in the near future.

 

E.Is calculated by dividing current assets by equity.

 

 

 

 

87.The Unadjusted Trial Balance columns of a company’s work sheet shows the Store Supplies account with a balance of $750. The Adjustments columns shows a credit of $425 for supplies used during the period. The amount shown as Store Supplies in the Balance Sheet columns of the work sheet is:   

$325 debit.

 

B.$325 credit.

 

C.$425 debit.

 

D.$750 debit.

 

E.$425 credit.

Unadjusted Store Supplies – Supplies used = Supplies unused$750 – $425 = $325

 

 

 

88.Accumulated Depreciation and Service Fees Earned would be sorted to which respective columns in completing a work sheet?    

Balance Sheet-Credit and Income Statement-Credit.

 

B.Balance Sheet Retained Earnings-Debit and Income Statement-Debit.

 

C.Income Statement-Debit and Income Statement-Credit.

 

D.Balance Sheet-Debit and Balance Sheet -Credit.

 

E.Balance Sheet-Debit and Income Statement-Credit.

 

 

 

 

89.Which of the following statements is incorrect?    

A.Working papers are useful aids in the accounting process.

 

B.On the work sheet, the effects of the accounting adjustments are shown on the account balances.

 

C.After the work sheet is completed, it can be used to help prepare the financial statements.

 

On the work sheet, the adjusted amounts are sorted into columns according to whether the accounts are used in preparing the unadjusted trial balance or the adjusted trial balance.

 

E.A worksheet is not a substitute for financial statements.

 

 

 

 

90.A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:    

$200 decrease in net income.

 

B.$200 increase in net income.

 

C.$200 difference between the debit and credit columns of the Unadjusted Trial Balance.

 

D.$200 of prepaid insurance.

 

E.An error in the financial statements.

 

 

 

 

91.A company’s December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period? 

UnadjustedTrial BalanceAdjustments

DebitCreditDebitCredit

Cash975

Prepaid insurance3,600150

Supplies18070

Equipment10,320

Accounts payable1,140

Unearned fees4,500375

Common stock9,180

Dividends1,650

Fees earned5,850375

Rent expense1,500300

Salaries expense2,100315

Utilities expense345

Insurance expense150

Supplies expense70

Depreciation expense—equipment190

Accumulated depreciation—equipment190

Salaries payable315

Accounts receivable300

Totals20,67020,6701,4001,400

  

A.$1,400.

 

$1,855.

 

C.$1,905.

 

D.$2,060.

 

E.$4,670.

 

Fees Earned ($5850 + $375 + $300)$6,525

Rent Expense(1,500)

Salaries Expense ($2,100 + $315)(2,415)

Insurance Expense(150)

Utilities Expense(345)

Supplies Expense(70)

Depreciation Expense, Equipment(190)

Net Income$1,855

 

 

 

 

92.A company’s December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period? 

UnadjustedTrial BalanceAdjustments

DebitCreditDebitCredit

Cash1,975

Accounts Receivable1,000875

Prepaid insurance1,600650

Supplies330115

Equipment8,320

Accumulated depreciation—equipment720190

Accounts payable1,140

Common stock9,110

Dividends1,050

Fees earned7,250875

Rent expense1,300

Salaries expense2,300

Utilities expense345

Insurance expense650

Supplies expense115

Depreciation expense—equipment190

Totals18,22018,2201,8301,830

  

A.$3,305.

 

B.$4,180.

 

C.$2,350.

 

D.$2,540.

 

$3,225.

 

Fees Earned ($7,250 + $875)$8,125

Rent Expense(1,300)

Salaries Expense(2,300)

Insurance Expense(650)

Utilities Expense(345)

Supplies Expense(115)

Depreciation Expense, Equipment(190)

Net Income$3,225