Question : 71. Which of the following the usual final step in the : 1225803

71. Which of the following is the usual final step in the accounting cycle? 

A. Journalizing transactions.

B. Preparing an adjusted trial balance.

C. Preparing a post-closing trial balance.

D. Preparing the financial statements.

E. Preparing a work sheet.

72. A classified balance sheet: 

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

B. Organizes assets and liabilities into important subgroups.

C. Presents revenues, expenses, and net income.

D. Reports operating, investing, and financing activities.

E. Reports the effect of profit and withdrawals on owner’s capital.

73. The assets section of a classified balance sheet usually includes: 

A. Current assets, long-term investments, plant assets, and intangible assets.

B. Current assets, long-term assets, revenues, and intangible assets.

C. Current assets, long-term investments, plant assets, and equity.

D. Current liabilities, long-term investments, plant assets, and intangible assets.

E. Current assets, liabilities, plant assets, and intangible assets.

74. The usual order for the asset section of a classified balance sheet is: 

A. Current assets, prepaid expenses, long-term investments, intangible assets.

B. Long-term investments, current assets, plant assets, intangible assets.

C. Current assets, long-term investments, plant assets, intangible assets.

D. Intangible assets, current assets, long-term investments, plant assets.

E. Plant assets, intangible assets, long-term investments, current assets.

75. A classified balance sheet differs from an unclassified balance sheet in that 

A. an unclassified balance sheet is never used by large companies.

B. a classified balance sheet normally includes only three subgroups.

C. a classified balance sheet presents information in a manner that makes it easier to calculate a company’s current ratio.

D. a classified balance sheet will include more accounts than an unclassified balance sheet for the same company on the same date.

E. a classified balance sheet cannot be provided to outside parties.

76. 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.

77. 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 evaluate a company’s ability to pay its debts in the near future.

E. Is calculated by dividing current assets by equity.

78. All of the following regarding current ratio are true except: 

A. Current ratio is calculated by dividing current assets by current liabilities.

B. Current ratio helps to assess a company’s ability to pay its debts in the near future.

C. Current ratio does not affect a creditor’s decision on when to allow a company to buy on credit.

D. Current ratio can affect a creditor’s decision about whether to lend money to a company.

E. Current ratio can reveal problems in a company if it is less than 1.

79. The Unadjusted Trial Balance columns of a company’s work sheet show the balance in the Office Supplies account as $750. The Adjustments columns show that $425 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns of the work sheet is: 

A. $325 debit.

B. $325 credit.

C. $425 debit.

D. $750 debit.

E. $750 credit.

80. A columnar working paper used to prepare a company’s unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements, and which is an optional tool in the accounting process is a(n) : 

A. Adjusted trial balance.

B. Work sheet.

C. Post-closing trial balance.

D. Unadjusted trial balance.

E. General ledger.