accounting-A company’s operating cycle is ________.
by ella | Aug 20, 2025 | Business
| Question 1.1.A company’s 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 assets EXCEPT ________. (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 31st, 2011, they have a note payable on the books to the bank for $500,000. The entire balance is due on March 31st, 2013. Their typical operating cycle is 18 months. This should be classified as a ________ on their financial statements dated December 31st, 2011. (Points : 1) |
current liability
long-term liability
current asset
long-term asset |
| Question 8.8.The current ratio measures a company’s ________. (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 owner’s 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
owner’s 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 |
