1.Accounting ratios can be used to evaluate a company's financial condition. Which ratio measures the ability of a company to pay its current liabilities with its current assets?
a)debit ratio
b)current ratio
c)accounting ratio
d)none of the above
2.Closing the accounts occures at the end of the period. It consists of journalizing and posting the closing entries in order to get the account
a)true
b)false
3.The closing process zeros out
a)all accounts
b)permanent accounts
c)temporary accounts
d)closing account
4.Assets are listed on the balance sheet in the order of:
a)purchased date
b)their balance
c)liquidity
d)none of the above
5.Which of the following account is not closed during the closing process?
a)revenue
b)salary expenses
c)supplies
d)withdrawals
6.Adjusting are needed to to properly measure(a)net income or net loss on the income statement and (b)assets and liabilities on the balance sheet.
a)true
b)false
7.Which basis of account provides more complete and up-to-date accounting of business operation?
a)accural accounting
b)cash accounting
d)the general ladger
d)none of the above
8.Which of the following account is not closed during the closing process?
a)revenue
b)salary expense
c)supplies
d)withdrawals
9.The supplies account has an unadjustted balance of $550 on your trail balance. At the end of the period you count supplies of 375(on hand).What adjusting entry would be made for the period.
a)supplies debit 175 cedit
supplie expense 175
b)supplies expense 175
supplies 175
c)supplies expense 375
supplies 375
d)no adjusting entry
10.You purchased a copier in the amount $3,000 on January1,2011 with a useful life of 5years. At the end of January2012, you will need to record depreciation fot he copier. What adjusting entry would be made to record depreciation?
a)copier debit 3000 credit
Depreciation 3000
b)Accumulated depreciation 500
copier 500
c)Depreciation expense 500
Accumulated depreciation 500
d)Depreciation expense 50
Accumulated depreciation 50
11.Adjusted entries are made to update the assets and owners equity accounts
a)true
b)false