Question 1) Every adjustment affects which of the following accounts on the income statements
a) revenue and assets accounts
b) assets and equity account
c) revenue and liability account
d) none of these accounts.
Question 2) Which of the following accounts would most likely appears on the adjusted trial balance (have and account balance), but not appears on the adjusted trial balance (account balance would be zero)?
a) depreciation expense
b) service revenue
c) unearned revenue
d) accumulated depreciation
Question 3) the following contains information from the records of Baptiste Publishing
December 31, 2007
Current assets $ 74,000
Current Liability $ 44,000
Long term Assets $ 95,000
Long term liability $ 60,000
Total revenue $ 50,000
Total expense $ 30,000
Which of the statements are accurate interpretations of Baptiste Publishing current ratio?
1) the company has $2.32 of current asset for every $1.00 of liabilities.
2) the company has $0.59 of current assets for every $1.00 of current liabilities.
3) the company has $1.58 of current assets of every $1.00 of liabilities.
4) the company has $1.68 of current assets of every $1.00 of current liabilities