21Below is a list of various balance sheet accounts and their balances.
A) $29,800
B) $ 9,000
C) $ 9,800
D) $ 6,800
22Below is a list of various balance sheet accounts and their balances.
DebitCredit
Notes payable–short term$800
Salary payable3,600
Notes payable–long term20,000
Accounts payable2,200
Unearned revenue1,000
Interest payable2,200
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
23The 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.
24Which 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.
25What 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.
26What 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.
27The following worksheet is for Tuttle Photography.
Tuttle Photography, Inc.
Worksheet
For the Year Ended December 31, 2012
AccountsDebitCredit
Cash$15,000
Accounts receivable30,000
Prepaid insurance7,500
Office supplies3,200
Land40,000
Building160,000
Accumulated depreciation$12,000
Equipment75,000
Accumulated depreciation8,500
Accounts payable12,000
Salaries payable2,000
Unearned service revenue25,000
Mortgage payable100,000
Common stock10,000
Retained earnings11,290
Dividends23,000
Service revenue289,000
Salaries expense61,000
Depreciation expense6,150
Supplies expense14,040
Insurance expense14,000
Utilities expense20,900
$469,790$469,790
Using the information from the worksheet above, prepare a classified balance sheet in account form for Tuttle Photography, Inc.
100,000
Land40,000Total liabilities139,000
Building$160,000Stockholders’ Equity
Less: Accumulated
depreciation
12,000
148,000Common stock10,000
8,50066,500
Total stockholders’ equity
171,200
Total Property, plant
and equipment
254,500