83.A classified balance sheet:
A.Measures a company's ability to pay its bills on time.
Organizes assets and liabilities into important subgroups that provide more information.
C.Broadly groups items into assets, liabilities and equity.
D.Reports operating, investing, and financing activities.
E.Reports the effect of profit and dividends on retained earnings.
84.Two common subgroups for liabilities on a classified balance sheet are:
A.Current liabilities and intangible liabilities.
B.Present liabilities and operating liabilities.
C.General liabilities and specific liabilities.
D.Intangible liabilities and long-term liabilities.
Current liabilities and long-term liabilities.
85.Which of the following is classified as current assets?
A.Office equipment.
B.Patent.
C.Unearned revenue.
Office supplies.
E.Land.
86.The current ratio:
A.Is used to measure a company's profitability.
B.Is used to measure the relation between assets and long-term debt.
C.Measures the effect of operating income on profit.
Is used to help assess a company's ability to pay its debts in the near future.
E.Is calculated by dividing current assets by equity.
87.The Unadjusted Trial Balance columns of a company's work sheet shows the Store Supplies account with a balance of $750. The Adjustments columns shows a credit of $425 for supplies used during the period. The amount shown as Store Supplies in the Balance Sheet columns of the work sheet is:
$325 debit.
B.$325 credit.
C.$425 debit.
D.$750 debit.
E.$425 credit.
Unadjusted Store Supplies - Supplies used = Supplies unused
$750 - $425 = $325
88.Accumulated Depreciation and Service Fees Earned would be sorted to which respective columns in completing a work sheet?
Balance Sheet-Credit and Income Statement-Credit.
B.Balance Sheet Retained Earnings-Debit and Income Statement-Debit.
C.Income Statement-Debit and Income Statement-Credit.
D.Balance Sheet-Debit and Balance Sheet -Credit.
E.Balance Sheet-Debit and Income Statement-Credit.
89.Which of the following statements is
incorrect?
A.Working papers are useful aids in the accounting process.
B.On the work sheet, the effects of the accounting adjustments are shown on the account balances.
C.After the work sheet is completed, it can be used to help prepare the financial statements.
On the work sheet, the adjusted amounts are sorted into columns according to whether the accounts are used in preparing the unadjusted trial balance or the adjusted trial balance.
E.A worksheet is not a substitute for financial statements.
90.A company shows a $600 balance in Prepaid Rent in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired rent of $200. This adjusting entry results in:
$200 decrease in net income.
B.$200 increase in net income.
C.$200 difference between the debit and credit columns of the Unadjusted Trial Balance.
D.$200 of prepaid insurance.
E.An error in the financial statements.
91.A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period?
Unadjusted
Trial Balance
Adjustments
Debit
Credit
Debit
Credit
Cash975
Prepaid insurance3,600150
Supplies18070
Equipment10,320
Accounts payable1,140
Unearned fees4,500375
Common stock9,180
Dividends1,650
Fees earned5,850375
Rent expense1,500300
Salaries expense2,100315
Utilities expense345
Insurance expense150
Supplies expense70
Depreciation expense—equipment190
Accumulated depreciation—equipment190
Salaries payable315
Accounts receivable300
Totals20,67020,6701,4001,400
A.$1,400.
$1,855.
C.$1,905.
D.$2,060.
E.$4,670.
Fees Earned ($5850 + $375 + $300)$6,525
Rent Expense(1,500)
Salaries Expense ($2,100 + $315)(2,415)
Insurance Expense(150)
Utilities Expense(345)
Supplies Expense(70)
Depreciation Expense, Equipment(190)
Net Income$1,855
92.A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period?
Unadjusted
Trial Balance
Adjustments
Debit
Credit
Debit
Credit
Cash1,975
Accounts Receivable1,000875
Prepaid insurance1,600650
Supplies330115
Equipment8,320
Accumulated depreciation—equipment720190
Accounts payable1,140
Common stock9,110
Dividends1,050
Fees earned7,250875
Rent expense1,300
Salaries expense2,300
Utilities expense345
Insurance expense650
Supplies expense115
Depreciation expense—equipment190
Totals18,22018,2201,8301,830
A.$3,305.
B.$4,180.
C.$2,350.
D.$2,540.
$3,225.
Fees Earned ($7,250 + $875)$8,125
Rent Expense(1,300)
Salaries Expense(2,300)
Insurance Expense(650)
Utilities Expense(345)
Supplies Expense(115)
Depreciation Expense, Equipment(190)
Net Income$3,225