21) Below is a list of various balance sheet accounts and their balances.
|
Debit
|
Credit
|
Notes payable?short term
|
|
$800
|
Salary payable
|
|
3,600
|
Notes payable?long term
|
|
20,000
|
Accounts payable
|
|
2,200
|
Unearned revenue
|
|
1,000
|
Interest payable
|
|
2,200
|
What is the total of current liabilities which would be shown on the balance sheet?
A) $29,800
B) $9,000
C) $9,800
D) $6,800
22) Below is a list of various balance sheet accounts and their balances.
|
Debit
|
Credit
|
Notes payable?short term
|
|
$800
|
Salary payable
|
|
3,600
|
Notes payable?long term
|
|
20,000
|
Accounts payable
|
|
2,200
|
Unearned revenue
|
|
1,000
|
Interest payable
|
|
2,200
|
What is the total of long-term liabilities which would be shown on the balance sheet?
A) $29,800
B) $9,000
C) $9,800
D) $20,000
23) The definition of liquidity is how:
A) easily an asset may be sold and turned into cash.
B) long an asset can be used.
C) easily an asset can be exchanged for another asset.
D) short an operating cycle is.
24) Which of the following statements MOST precisely describes a classified balance sheet?
A) Accounts are classified by their purchase dates.
B) Account balances are listed from the highest amount to the lowest amount.
C) Assets are listed in their order of liquidity.
D) Assets are listed in alphabetical order.
25) What is the key distinction between current and non-current assets?
A) Current assets will be used up or converted to cash within one year or one operating cycle.
B) Non-current assets are assets which do not lose their value over time.
C) Current assets always have lower balances than non-current assets.
D) Non-current assets will not be used until the future.
26) What is the key distinction between current and non-current liabilities?
A) Current liabilities will be paid off within one year or one operating cycle.
B) Non-current liabilities are permanent debts of the business.
C) Current liabilities always have lower balances than non-current liabilities.
D) Non-current liabilities always increase over time.
27) The following worksheet is for Tuttle Photography.
Tuttle Photography, Inc.
Worksheet
For the Year Ended December 31, 2012
Accounts
|
Debit
|
Credit
|
Cash
|
$15,000
|
|
Accounts receivable
|
30,000
|
|
Prepaid insurance
|
7,500
|
|
Office supplies
|
3,200
|
|
Land
|
40,000
|
|
Building
|
160,000
|
|
Accumulated depreciation
|
|
$12,000
|
Equipment
|
75,000
|
|
Accumulated depreciation
|
|
8,500
|
Accounts payable
|
|
12,000
|
Salaries payable
|
|
2,000
|
Unearned service revenue
|
|
25,000
|
Mortgage payable
|
|
100,000
|
Common stock
|
|
10,000
|
Retained earnings
|
|
11,290
|
Dividends
|
23,000
|
|
Service revenue
|
|
289,000
|
Salaries expense
|
61,000
|
|
Depreciation expense
|
6,150
|
|
Supplies expense
|
14,040
|
|
Insurance expense
|
14,000
|
|
Utilities expense
|
20,900
|
|
|
$469,790
|
$469,790
|
Using the information from the worksheet above, prepare a classified balance sheet in account form for Tuttle Photography, Inc.