Question 1.1.A companys operating cycle is ________. (Points : 1)

the time required to purchase and sell goods and services and collect cash from customers. the time required to purchase and sell goods and services the process by which companies produce their financial statements a fiscal year

Question 2.2.A work sheet is a_______. (Points : 1)

formal statement issued to investors formal document required by the Internal Revenue Service replacement for the general journal a multicolumn document used by accountants to aid in the preparation of the financial statements

Question 3.3.All of the following are long-term assetsEXCEPT________. (Points : 1)

land accounts receivable buildings equipment

Question 4.4.Which situation indicates a net loss on the income statement? (Points : 1)

Total credits exceed total debits Total debits equal total credits Total credits equal total debits Total debits exceed total credits

Question 5.5.Assets and liabilities are listed on the balance sheet in order of their: (Points : 1)

Purchase date Balance Liquidity Adjustments

Question 6.6.Which columns of the worksheet show net income? (Points : 1)

Income statement Trial balance Adjustments Balance sheet

Question 7.7.Gibbons Co. manufactures yachts. On December 31^st, 2011, they have a note payable on the books to the bank for $500,000. The entire balance is due on March 31^st, 2013. Their typical operating cycle is 18 months. This should be classified as a ________ on their financial statements dated December 31^st, 2011. (Points : 1)

current liability long-term liability current asset long-term asset

Question 8.8.The current ratio measures a companys ________. (Points : 1)

profitability ability to pay its current liabilities with current assets ability to pay its total liabilities ability to efficiently use assets

Question 9.9.Which of the following statements is TRUE concerning the worksheet? (Points : 1)

The worksheet is a ledger. The worksheet is a document used to summarize data to prepare the financial statements. The worksheet is a financial statement. The worksheet is a journal.

Question 10.10.Revenues total $10,200, expenses total $7,300, and the owners withdrawals account has a balance of $2,600. What is the balance in the income summary account after all closing entries are completed? (Points : 1)

$2,600 credit $2,900 debit $2,900 credit $0

Question 11.11.Revenues are closed into the ________ account? (Points : 1)

income summary the owner's withdrawals owners capital expenses

Question 12.12._______ is a process by which companies produce their financial statements for a specific period. (Points : 1)

Liquidity The operating cycle The accounting cycle Postclosing

Question 13.13.The _______ is the total liabilities divided by total assets. This ratio reveals the proportion of a company's assets that it has financed with debt. (Points : 1)

debt ratio liquidity ratio current ratio leverage ratio

Question 14.14.Hewatt Co. has the following accounts:

Cash	$7,000
Accounts Receivable	9,000
Inventory	22,000
Prepaid Expenses	3,000
Property, Plant, and Equipment	65,000
Long-term Notes Receivable	12,000
Accounts Payable	35,000
Accrued Liabilities	6,500
Current Portion of Long-term Debt	15,000
Long-term Debt	45,000
Capital	16,500

Based on Hewatt Co.s current ratio, lenders to Hewatt Co. may conclude that ________. (Points : 1)

Hewatt Co. would not be able to meet current obligations out of current assets a low percentage of assets are financed with debt Hewatt Co. has liquidity and should be able to meet all current liabilities Hewatt Co. efficiently manages its assets

Question 15.15.When creating a financial statement in order of reverse liquidity, which of the following asset types is listed first? (Points : 1)

current long-term intangible disposed