Deck 4: Completing the Accounting Cycle

Question 1

Prepaid rent in the worksheet's trial balance column is $4 000.Prepaid rent in the balance sheet column is $2 000.Which of the following entries would have caused this difference?

A)A $2 000 credit entry to Prepaid rent in the worksheet's adjustments column
B)A $2 000 debit entry to Prepaid rent in the worksheet's adjustments column
C)A $2 000 credit entry to Rent expense in the worksheet's adjustments column
D)A $2 000 debit entry to Cash in the worksheet's adjustments column

Answer 1

A

Question 2

The Interest expense in the worksheet's unadjusted trial balance column is $6000.Interest expense in the income statement column is $10,000.Which of the following entries would have caused this difference?

A)a $10,000 credit to Interest expense in the worksheet's adjustments column
B)a $4000 credit to Interest expense in the worksheet's adjustments column
C)a $10,000 credit to Interest payable in the worksheet's adjustments column
D)a $4000 debit to Interest expense in the worksheet's adjustments column

Answer 2

D

Question 3

The Drawings account is copied to the Income statement columns on the worksheet.

Answer 3

False

Question 4

The Net profit of Sarah for the year is $40,000.The withdrawals Sarah made during the year amounted to $51,000.Which of the following statements is true of the effect of these transactions on Sarah,capital?

A)Sarah,capital account decreases by $40,000.
B)Sarah,capital account increases by $51,000.
C)Sarah,capital account decreases by $11,000.
D)Sarah,capital account increases by $40,000.

Question 5

Which of the following accounts would appear in the Income statement credit column?

A)Prepaid insurance
B)Depreciation expense
C)Service revenue
D)Unearned service revenue

Question 6

Net profit (loss)is the difference between the total debits and the total credits in the Income statement columns.

Question 7

In which of the columns of the worksheet would a loss be found?

A)In the balance sheet credit column and the Income statement debit column
B)In the trial balance debit column,the adjusted trial balance debit column and the balance sheet debit column
C)In the balance sheet debit column and the Income statement credit column
D)In the trial balance credit column,the adjusted trial balance credit column and the balance sheet credit column

Question 8

Which of the following is true of a completed worksheet?

A)The total debits equal the total credits in each column.
B)The total debits in the income statement column equal the total credits in the balance sheet column.
C)The total debits in the income statement column equal the total debits in the balance sheet column.
D)The total debits in the trial balance column equal the total debits in the adjusted trial balance column.

Question 9

In which of the columns of the worksheet would Profit be found?

A)Under the balance sheet credit column and the income statement debit column
B)Under the trial balance debit column,the adjusted trial balance debit column and the balance sheet debit column
C)Under the trial balance credit column,the adjusted trial balance credit column and the balance sheet credit column
D)Under the balance sheet debit column and the income statement credit column

Question 10

The adjusting entry for depreciation would include a:

A)debit to Accumulated depreciation and a credit to the asset.
B)debit to Depreciation expense and a credit to Accumulated depreciation.
C)debit to Accumulated depreciation and a credit to Depreciation expense.
D)debit to Depreciation expense and a credit to Cash.

Question 11

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

A)Salaries payable
B)Insurance expense
C)Equipment
D)Rent revenue

Question 12

The worksheet helps accountants to:

A)make the adjusted trial balance.
B)prepare the unadjusted trial balance.
C)prepare the financial statements.
D)maintain books of accounts without a journal.

Question 13

Which of the following statements is TRUE concerning the worksheet?

A)The worksheet is a document used to summarise data to prepare the financial statements.
B)The worksheet is a ledger.
C)The worksheet is a journal.
D)The worksheet is a financial statement.

Question 14

Please refer to the worksheet below. $\begin{array}{|l|c|c|c|c|c|c|c|c|c|c|}\hline &\text { Trial Balance }&&\text { Adjustments }&&\text { Adjusted Trial balance}&&\text { Income statement }&&\text { Balance sheet }\\\hline \text { Account Title } & \text { Dr. } & \text { Cr. } & \text { Dr. } & \text { Cr. } & \text { Dr. } & \text { Cr. } & \text { Dr. } & \text { Cr. } & \text { Dr. } & \text { Cr. } \\\hline \text { Cash } & \$ 1700 & & & & \$ 1700 & & & & \$ 1700 & \\\hline \text { Accounts receivable } & 8500 & & 52000 & & 10500 & & & & 10500 \\\hline \text { Supplies } & 100 & & & 500 & 20 & & & & 20 \\\hline \text { Equipment } & 7500 & & & & 7500 & & & & 7500 \\\hline \begin{array}{l}\text { Accumulated } \\\text { Depreciation }\end{array} & & \$ 2000 & & 240 & & \$ 2240 & & & & \$ 2240 \\\hline \text { Accounts payable } & & 1200 & & & & 1200&&&&1200 \\\hline \text { Salary payable } & & 800 & & 180 & & 980&&&&980 \\\hline \text { Unearned revenue } & & 600 & & & & 600 &&&&600\\\hline \text { Capital } & & 3400 & & & & 3400 &&&&3400\\\hline \text { Drawings } & 2300 & & & & 2300 & & & & 2300 \\\hline \text { Service revenue } & & 40000 & & 2000 & & 42000 & & 42000 & \\\hline \text { Salary expense } & 24000 & & 100 & & 24100&&24180 \\\hline \text { Supplies expense } & 2300 & & 80 & & 2300&&2380 \\\hline \begin{array}{l}\text { Depreciation } \\\text { expense }\end{array} & 1600 & & 240 & & 1840 & & 1840 \\\hline& \$ 48000 & \$ 48000 & \$ 2500 & \$ 2500 & \$ 50420 & \$ 50420 & \$ 28400 & \$ 42000 & \$ 22020 & \$ 8420 \\\hline&&&&&&& \underline{13600} & & & \underline{13600} \\\hline&&&&&&& \$ 42000 & \$ 42000 & \$ 22020 & \$ 22020 \\\hline\end{array}$ How much was the Profit?

A)$13 600
B)$42 000
C)$22 020
D)$28 400

Question 15

The worksheet is NOT a journal,a ledger or a financial statement.

Question 16

Where does Profit appear on a worksheet?

A)Profit appears only in the Income statement debit column.
B)Profit appears in the Income statement credit column and in the balance sheet debit column.
C)Profit appears in the balance sheet credit column and in the Income statement debit column.
D)Profit appears only in the balance sheet credit column.

Question 17

Which of the following is the LAST step of preparing the worksheet?

A)Enter the adjusting entries in the adjustments columns,and total the amounts.
B)On the Income statement column,calculate profit.Enter profit or loss as the balancing amount on the Income statement and balance sheet columns.Total the Income statement and balance sheet columns.
C)Copy the asset,liability and owners' equity amounts from the adjusted trial balance to the balance sheet columns.Copy the revenue and expense amounts to the Income statement columns.Total each column.
D)Calculate each account's adjusted balance by combining the trial balance and adjustment figures.Enter each account's adjusted amount in the adjusted trial balance columns.

Question 18

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

A)Equipment
B)Salary payable
C)Insurance expense
D)Rent revenue

Question 19

Interest expense in the worksheet's trial balance column is $3 000.Interest expense in the Income statement column is $7 000.Which of the following entries would have caused this difference?

A)A $4 000 debit to Interest expense in the worksheet's adjustments column
B)A $7 000 credit to Interest payable in the worksheet's adjustments column
C)A $4 000 credit to Interest expense in the worksheet's adjustments column
D)A $7 000 credit to Interest expense in the worksheet's adjustments column

Question 20

Which of the following accounts would appear in the balance sheet debit column?

A)Prepaid insurance
B)Accumulated depreciation
C)Service revenue
D)Unearned service revenue

Question 21

The adjusting process zeroes out all revenues and all expenses.

Question 22

Rose Company earned revenues of $17,000 and incurred expenses of $4500.The drawings of Mary Rose,the owner,were $1000.What is the balance in the Income summary account prior to closing profit or loss to the Rose,capital account?

A)Debit balance of $17,000
B)Credit balance of $12,500
C)Credit balance of $17,000
D)Debit balance of $12,500

Question 23

Refer to the following adjusted trial balance. $\begin{array}{|l|l|l|}\hline \text { Accounts } & {\text { Debit }}&\text { Credit } \\\hline \text { Cash } & \$ 1900 \\\hline \text { Accounts receivable } & 3500 \\\hline \text { Office supplies } & 100 \\\hline \text { Equipment } & 20,500\\\hline \text { Accumulated depreciation -equipment } & \$ 3000 \\\hline \text { Accounts payable } & 1700 \\\hline \text { Salaries payable } & 350 \\\hline \text { Unearned revenue } & 550 \\\hline \text { Owner's name, capital } & 3200 \\\hline \text { Owner's name, drawings } & 3000 & \\\hline \text { Service revenue } & & 51,700 \\\hline \text { Salaries expense } & 23,000 \\\hline \text { Supplies expense } & 2200 \\\hline \text { Depreciation expense - equipment } & 1800 \\\hline \text { Total } & \$ 1,000 & \$ 1,000\\\hline\end{array}$ What will be the final ending balance in the Owner's name,capital account after posting the closing entries?

A)$24,700
B)$27,900
C)$24,900
D)$27,700

Question 24

Permanent accounts are NOT closed at the end of the period.

Question 25

Which of the following does NOT appear on the worksheet?

A)Adjusting entries
B)Closing entries
C)Adjusted balances
D)Profit

Question 26

The following is the adjusted trial balance for Tuttle Photography. $\begin{array}{|l|l|l|}\hline \text { Accounts } & {\text { Debit }}&\text { Credit } \\\hline \text { Cash } & \$ 81,000 \\\hline \text { Accounts receivable } & 26,000 \\\hline \text { Prepaid insurance } & 6500 \\\hline \text { Office supplies } & 3400 \\\hline \text { Building } & 130,000 \\\hline \text { Accumulated depreciation - building } & & \$ 13,500 \\\hline \text { Equipment } & 70,000 & \\\hline \text { Accumulated depreciation - equipment } & & 9000 \\\hline \text { Land } & 47,000 &\\\hline \text { Accounts payable } && 20,000 \\\hline \text { Salaries payable } && 4000 \\\hline \text { Unearned service revenue } && 22,000 \\\hline \text { Mortgage payable } & &103,000 \\\hline \text { R. Tuttle, capital } & &15,500 \\\hline \text { R. Tuttle, drawings } & 25,000 & \\\hline \text { Service revenue } & & 318,000 \\\hline \text { Salaries expense } & 61,000 &\\\hline \text { Depreciation expense - building and equipment } & 5700 \\\hline \text { Supplies expense } & 14,000 \\\hline \text { Insurance expense } & 14,400 \\\hline \text { Electricity and gas expense } & 21,000 \\\hline \text { Total } & \$ 505,000 & \$ 505,000\\\hline\end{array}$ After the closing entries,what will the final balance in R.Tuttle,capital be?

A)$227,400
B)$192,400
C)$25,000
D)$25,500

Question 27

Which is NOT an example of a temporary account?

A)Electricity and gas expense
B)Service revenue
C)Wages expense
D)Accumulated depreciation

Question 28

Which of the following accounts will still show a balance after the closing process is completed?

A)Service revenue account
B)Expense accounts
C)Accumulated depreciation account
D)Drawings account

Question 29

Which of the following entries will be necessary to close the insurance expense account at the end of the year?

A)Debit Capital and credit Insurance expense
B)Debit Insurance expense and credit Income summary
C)Debit Insurance expense and credit Capital
D)Debit Income summary and credit Insurance expense

Question 30

To what account is the balance in the Income summary account closed?

A)The Capital account
B)The Drawings account
C)The Profit account
D)The Revenue account

Question 31

Which of the following entries will be necessary to close the appropriate depreciation account at the end of the year?

A)Debit Depreciation expense and credit Income summary
B)Debit Accumulated depreciation and credit Income summary
C)Debit Income summary and credit Depreciation expense
D)Debit Income summary and credit Accumulated depreciation

Question 32

Which of the following accounts does NOT close at the end of the period?

A)Depreciation expense
B)Drawings
C)Accumulated depreciation
D)Sales revenues

Question 33

Which of the following accounts will be closed by crediting the Income summary account?

A)Accounts payable
B)Service revenue
C)Depreciation expense
D)Accumulated depreciation

Question 34

Rose Company earned revenues of $18,000 and incurred expenses of $4000.The drawings of Mary Rose,the owner,were $2500.What is the balance in the Income summary account after closing profit or loss to the Rose,capital account?

A)Credit balance of $4000
B)Credit balance of $14,000
C)Debit balance of $18,000
D)Balance of $0

Question 35

Where can closing entries be found?

A)In a company's general journal
B)On a company's worksheet
C)On a company's statement of changes in equity
D)On a company's balance sheet

Question 36

Which account has a balance equal to profit immediately before it is closed?

A)The Capital account
B)The Income summary account
C)The Drawings account
D)The Profit account

Question 37

Which of the following accounts will be closed by debiting the Income summary account?

A)Accumulated depreciation
B)Service revenue
C)Accounts payable
D)Depreciation expense

Question 38

Which of the following accounts will be closed by debiting the Income summary account?

A)Salary expense
B)Accounts receivable
C)Service revenue
D)Drawings

Question 39

Which of the following accounts are temporary accounts that must be closed at the end of the year?

A)Assets,liabilities and capital
B)Revenues,expenses and capital
C)Revenues,expenses and drawings
D)Assets,liabilities and drawings

Question 40

What is the result if the amount of profit for the year is less than the amount of the drawings?

A)The amount in the Cash account increases.
B)The amount in the Cash account decreases.
C)The Capital account decreases.
D)The Capital account increases.

Question 41

John Smith is the owner of Alpha Technologies Ltd.The beginning balance in Smith,capital was $90 000.The revenues and expenses were $70 000 and $50 000,respectively.If no drawings were made by Smith during the year,the ending balance in Smith,Capital must be $100 000.

Question 42

Under which of the following categories would Land appear?

A)Non-current liabilities
B)Non-current assets
C)Current liabilities
D)Current assets

Question 43

A balance sheet that has the assets listed above the liabilities and equity sections is a(n):

A)audited form balance sheet.
B)classified form balance sheet.
C)report form balance sheet.
D)account form balance sheet.

Question 44

Capital is a permanent account.

Question 45

Drawings is a permanent account.

Question 46

A list of the accounts and their balances at the end of the period after journalising and posting the closing entries which includes only permanent accounts is called:

A)post-closing trial balance.
B)pre-closing balance sheet.
C)chart of accounts.
D)adjusted trial balance.

Question 47

Buildings,land and equipment would be classified as:

A)non-current liabilities.
B)non-current assets.
C)current assets.
D)current liabilities.

Question 48

The post-closing trial balance lists the accounts from the general ledger in:

A)numerical order.
B)alphabetical order.
C)category order,beginning with assets and ending with owners' equity.
D)category order,beginning with assets and ending with expenses.

Question 49

Which of the following would be considered a non-current asset?

A)Land
B)Inventory
C)Prepaid insurance
D)Accounts receivable

Question 50

The post-closing trial balance is an optional step.

Question 51

Which of the following is NOT a non-current asset?

A)Accounts receivable
B)Equipment
C)Land
D)Buildings

Question 52

As part of the closing process,revenues and expenses are closed to a temporary account called Profit (loss).

Question 53

The post-closing trial balance shows the updated Capital balance.

Question 54

The last step in the closing process is to credit the Drawings account and debit the Capital account.

Question 55

Which of the following do NOT show up on a post-closing trial balance?

A)Capital and liabilities
B)Assets and liabilities
C)Capital and assets
D)Revenues and expenses

Question 56

A two-year loan payable would be classified as a:

A)non-current asset.
B)non-current liability.
C)current asset.
D)current liability.

Question 57

Under which of the following categories would Inventory appear?

A)Non-current assets
B)Non-current liabilities
C)Current assets
D)Current liabilities

Question 58

Under which of the following categories would Accounts payable appear?

A)Current liabilities
B)Non-current assets
C)Non-current liabilities
D)Current assets

Question 59

Which of the following accounts will be included in a post-closing trial balance?

A)Interest payable
B)Service revenue
C)Utilities expense
D)Interest expense

Question 60

Which of the following is NOT a current asset?

A)Accounts receivable
B)Prepaid insurance
C)Cash
D)Equipment

Question 61

Assets and liabilities are classified as either current or non-current to show their relative liquidity.

Question 62

Below is a list of various balance sheet accounts and their balances. $$\begin{array} { | l | l | } \hline \text { Loan payable - short term } & \$ 1000 \\\hline \text { Salaries payable } & 4000 \\\hline \text { Loan payable -long term } & 21,000 \\\hline \text { Accounts payable } & 3300 \\\hline \text { Unearned revenue } & 2000 \\\hline \text { Interest payable } & 2500 \\\hline\end{array}$$ What are the total non-current liabilities that would be shown on the balance sheet?

A)$4000
B)$1000
C)$5300
D)$21,000

Question 63

Adkins Company has a current ratio of 1.0 and a debt ratio of 0.7.Wilson Company has a current ratio of 1.4 and a debt ratio of 0.5.Both companies are in the same industry.Which of the following statements is TRUE?

A)The two companies' debt ratios and current ratios vary in different directions,and the companies appear to be in similar financial shape.
B)The two companies' debt ratios and current ratios vary in different directions,and these results do not make sense.
C)Wilson Company appears to be in better financial shape than Adkins Company.
D)Adkins Company appears to be in better financial shape than Wilson Company.

Question 64

Below is a list of various balance sheet accounts and their balances. $\begin{array}{|l|l|l|}\hline \text { Accounts } & {\text { Debit }}&\text { Credit } \\\hline \text { Building } & \$ 120,000 \\\hline \text { Building } & \$ 130,000 \\\hline \text { Cash } & 7000 \\\hline \text { Supplies } & 1000 \\\hline \text { Furniture } & 6000 \\\hline \text { Prepaid insurance } & 4700 \\\hline \text { Accumulated depreciation - furniture } & & \$ 950 \\\hline \text { Land } & 34,000 & \\\hline \text { Accumulated depreciation - building } & & 4700 \\\hline \text { Accounts receivable } & 950 &\\\hline\end{array}$ What are the total non-current assets that would be shown on the balance sheet?

A)$164,000
B)$130,000
C)$164,350
D)$170,000

Question 65

The following contains information from the records of the Wellborn Engineers and Architects.
$\quad$$\quad$$\quad$$\quad$ Wellborn Engineers and Architects
$\quad$$\quad$$\quad$$\quad$ Selected financial information
$\quad$$\quad$$\quad$$\quad$ 31 December,2016
$$\begin{array} { | l | l | } \hline \text { Current assets } & \$ 70,000 \\\hline \text { Current liabilities } & 35,000 \\\hline \text { Non-current assets } & 99,000 \\\hline \text { Non-current liabilities } & 62,000 \\\hline \text { Total revenues } & 53,000 \\\hline \text { Total expenses } & 37,000 \\\hline\end{array}$$ Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?

A)The company has $2.00 of current assets for every $1.00 of current liabilities.
B)The company has $0.57 of current assets for every $1.00 of current liabilities.
C)The company has $2.13 of current assets for every $1.00 of liabilities.
D)The company has $1.60 of current assets for every $1.00 of liabilities.

Question 66

Which of the following statements is an accurate interpretation of the debt ratio?

A)A debt ratio above 1.00 is considered a good,safe ratio.
B)A debt ratio of 2.0 indicates a very strong ability to pay liabilities.
C)A debt ratio of 0.60 or lower is considered a high-risk ratio.
D)A debt ratio of 0.60 or lower is a good,safe ratio.

Question 67

Which of the following is considered a good/safe rule-of-thumb debt ratio for businesses?

A)0.8 or below
B)0.6 or below
C)1.0 or above
D)1.5 or above

Question 68

Below is a list of various balance sheet accounts and their balances. $\begin{array}{|l|l|}\hline\text { Loan payable - short term } & \$ 1500 \\\hline \text { Salaries payable } & 5000 \\\hline \text { Loan payable-long term } & 25,000 \\\hline \text { Accounts payable } & 3500 \\\hline \text { Unearned revenue } & 1000 \\\hline \text { Interest payable } & 2300\\\hline\end{array}$ What are the total current liabilities shown on the balance sheet?

A)$5800
B)$13,300
C)$11,000
D)$11,800

Question 69

The following contains information from the records of the Wellborn Engineers and Architects.
$\quad$$\quad$$\quad$ Wellborn Engineers and Architects
$\quad$$\quad$$\quad$ Selected financial information

$\quad$$\quad$$\quad$$\quad$$\quad$ 31 December 2016
$$\begin{array} { | l | l | } \hline \text { Current assets } & \$ 80,000 \\\hline \text { Current liabilities } & 42,000 \\\hline \text { Non-current assets } & 97,000 \\\hline \text { Non-current liabilities } & 64,000 \\\hline \text { Total revenues } & 53,000 \\\hline \text { Total expenses } & 34,000 \\\hline\end{array}$$ Calculate the current ratio.

A)1.9
B)0.6
C)1.52
D)2.23

Question 70

Which of the following does the current ratio measure?

A)The company's overall ability to pay liabilities
B)The company's rate of cash flow
C)The proportion of the company's assets that are financed with debt
D)The company's ability to pay current liabilities with current assets

Question 71

Which of the following does the debt ratio measure?

A)The proportion of the company's assets that are financed with equity
B)The company's ability to invest in growth
C)The company's overall ability to pay its liabilities
D)The company's ability to pay current liabilities with current assets

Question 72

What is the key distinction between current and non-current liabilities?

A)Current liabilities always have lower balances than non-current liabilities.
B)Non-current liabilities always increase over time.
C)Non-current liabilities are permanent debts of the business.
D)Current liabilities will be paid off within one year or one operating cycle.

Question 73

Which of the following statements is an accurate interpretation of the current ratio?

A)A current ratio of 0.60 or lower is a good,safe ratio.
B)A current ratio below 1.00 is considered a good,safe ratio.
C)A current ratio of 2.0 indicates a very strong ability to pay current liabilities.
D)A current ratio of 1.5 or higher is considered a high-risk ratio.

Question 74

Prepaid rent is usually a non-current asset.

Question 75

The current ratio is a measure of a company's:

A)leverage.
B)solvency.
C)profitability.
D)liquidity.

Question 76

Which of the following statements is an accurate interpretation of a debt ratio of 0.60?

A)The company has $0.60 of current assets for every $1.00 of current liabilities.
B)The company has $0.60 of current liabilities for every $1.00 of current assets.
C)The company has $0.60 of assets for every $1.00 of liabilities.
D)The company has $0.60 of liabilities for every $1.00 of assets.

Question 77

Swan Song's adjusted trial balance as of 31 December 2017 is given below: $\begin{array}{|l|l|l|}\hline \text { Accounts } & {\text { Debit }}&\text { Credit } \\\hline \text { Cash } & \$ 13,000 \\\hline \text { Accounts receivable } & 11,000 \\\hline \text { Prepaid rent } & 9000 \\\hline \text { Prepaid insurance } & 2000 \\\hline \text { Office supplies } & 3000 \\\hline \text { Building } & 56,000 \\\hline \text { Accumumlated depreciation - building } & & \$ 11,000 \\\hline \text { Equipment } & 38,000 & \\\hline \text { Accumumlated depreciation - equipment } & & 7000 \\\hline \text { Land } & 10,000 & \\\hline \text { Accounts payable } && 5500 \\\hline \text { Salaries payable } && 4300 \\\hline \text { Interest payable } && 2700 \\\hline \text { Loan payable, non-current } && 5000 \\\hline \text { R. Lee, capital (deficit) } && 11,000 \\\hline \text { R. Lee, drawings } & 6900 & \\\hline \text { Service revenue } & & 239,500 \\\hline \text { Salaries expense } & 43,500 & \\\hline \text { Insurance expense } & 5000 \\\hline \text { Rent expense } & 12,000 \\\hline \text { Electricity and gas expense } & 18,000 \\\hline \text { Advertisting expense } & 9000 \\\hline \text { Depreciation expense - building } & 10,000 \\\hline \text { Depreciation expense - equipment } & 7900 \\\hline \text { Office supplies expense } & 1700 \\\hline \text { Total }&\$ 286,000 &\$ 286,000 \\\hline\end{array}$ Calculate the current ratio.

A)8.17
B)1.73
C)2.36
D)1.92

Question 78

Below is a list of various balance sheet accounts and their balances. $\begin{array}{|l|l|l|}\hline \text { Accounts } & {\text { Debit }}&\text { Credit } \\\hline \text { Building } & \$ 120,000 \\\hline \text { Cash } & 10,000 \\\hline \text { Supplies } & 300 \\\hline \text { Furniture } & 3000 \\\hline \text { Prepaid insurance } & 650 \\\hline \text { Accumulated depreciation - furniture } & & \$ 4000 \\\hline \text { Land } & 33,000 & \\\hline \text { Accumulated depreciation - building } & & 4300 \\\hline \text { Accounts receivable } & 2200 &\\\hline\end{array}$ What are the total current assets that would be shown on the balance sheet?

A)$11,450
B)$10,800
C)$13,650
D)$15,200

Question 79

The following contains information from the records of the Wellborn Engineers and Architects.

$\quad$$\quad$$\quad$$\quad$ Wellborn Engineers and Architects
$\quad$$\quad$$\quad$$\quad$ Selected financial information
$\quad$$\quad$$\quad$$\quad$ 31 December 2017
$\begin{array}{|l|l|}\hline\text { Current assets } & \$ 77000 \\\hline \text { Current liabilities } & 47000 \\\hline \text { Non-current assets } & 98000 \\\hline \text { Non-current liabilities } & 63000 \\\hline \text { Total revenues } & 53000 \\\hline \text { Total expenses } & 33000\\\hline\end{array}$ What is the debt ratio?

A)3.84
B)1.63
C)0.63
D)1.67

Question 80

A company has $140,000 in current assets;$600,000 in total assets;$80,000 in current liabilities,and$120,000 in total liabilities.The company has a current ratio of:

A)1.76
B)1.17
C)1.57
D)1.75