Question : 73.The recurring steps performed each reporting period in preparing financial : 1236895

73.The recurring steps performed each reporting period in preparing financial statements, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, is referred to as the:   

A.Accounting period.

B.Operating cycle.

C.Accounting cycle.

D.Closing cycle.

E.Natural business year.

74.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.

75.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 withdrawals on owner’s capital.

76.The assets section of a classified balance sheet usually includes the subgroups:   

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.

77.The usual order for the asset subgroups 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.

78.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 groups items into the broad categories of asset, liability, and equity.

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 is not usually provided to outside parties.

79.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.

80.Which of the following are classified as current assets?   

A.Office equipment.

B.Patent.

C.Unearned revenue.

D.Office supplies.

E.Land.

81.Which of the following are classified as plant assets?   

A.Office equipment.

B.Patent.

C.Cash.

D.Office supplies.

E.Merchandise inventory.

82.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.