Question :
83. A classified balance sheet: A. Measures a company’s ability to pay its : 1257825
83. A classified balance sheet: A. Measures a company’s ability to pay its bills on time.B. 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.E. Current liabilities and long-term liabilities.
85. Which of the following are classified as current assets?A. Office equipment.B. Patent.C. Unearned revenue.D. 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.D. 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: A. $325 debit.B. $325 credit.C. $425 debit.D. $750 debit.E. $425 credit.
88. Accumulated Depreciation and Service Fees Earned would be sorted to which respective columns in completing a work sheet? A. 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 -Debitand 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.D. 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: A. $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?
Cash……………………..
Unadjusted
Trial Balance
Adjustments
Debit
Credit
DebitCredit
975
Prepaid insurance……………..
3,600
150
Supplies……………………
180
70
Equipment………………….
10,320
Accounts payable………………
1,140
Unearned fees………………..
4,500
375
Common stock……………….
9,180
Dividends…………………..
1,650
Fees earned…………………
5,850
375
300
Rent expense………………..
1,500
Salaries expense………………
2,100
315
Utilities expense………………
345
Insurance expense……………..
150
Supplies expense………………
70
Depreciation expense—equipment……
190
Accumulated depreciation—equipment…
190
Salaries payable……………….
315
Accounts receivable…………….
300
Totals…………………….
20,670
20,670
1,400
1,400
A. $1,400.B. $1,855.C. $1,905.D. $2,060.E. $4,670.
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?
Cash……………………..
Unadjusted
Trial Balance
Adjustments
Debit
Credit
DebitCredit
1,975
Accounts Receivable……………………
1,000
875
Prepaid insurance……………..
1,600
650
Supplies……………………
330
115
Equipment………………….
8,320
Accumulated depreciation—equipment…
720
190
Accounts payable………………
1,140
Common stock……………….
9,110
Dividends…………………..
1,050
Fees earned…………………
7,250
875
Rent expense………………..
1,300
Salaries expense………………
2,300
Utilities expense………………
345
Insurance expense……………..
650
Supplies expense………………
115
Depreciation expense—equipment……
190
Totals…………………….
18,220
18,220
1,830
1,830
A. $3,305.B. $4,180.C. $2,350.D. $2,540.E. $3,225.
