123.
Lu Lu’s Catering has a debt ratio equal to 0.3 and its competitor, Able’s Bakery, has a debt
ratio equal to 0.7. Determine the statement below that is
correct
.
124.
Identify the statement that is
incorrect
.
125.
The debt ratio of Company A is 0.31 and the debt ratio of Company B is 0.21. Based on this
information, an investor can conclude:
126.
The debt ratio of Jackson’s Shoes is 0.9 and the debt ratio of Billy’s Catering is 1.0. Based on
this information, an investor can conclude:
127.
Gi Gi’s Bakery has total assets of $425 million. Its total liabilities are $110 million. Its equity is
$315 million. Calculate the debt ratio.
128.
Happiness Catering has total assets of $385 million. Its total liabilities are $100 million and its
equity is $285 million. Calculate its debt ratio.
129.
All of the following statements accurately describe the debt ratio
except:
130.
At the end of the current year, Leer Company reported total liabilities of $300,000 and total
equity of $100,000. The company’s debt ratio on the last year-end was:
131.
At the beginning of the current year, Trenton Company Inc.’s total assets were $248,000 and
its total liabilities were $175,000. During the year, the company reported total revenues of
$93,000, total expenses of $76,000 and dividends of $5,000. There were no other changes in
stockholders’ equity during the year and total assets at the end of the year were $260,000.
Trenton Company’s debt ratio at the end of the current year is:
132.
The process of transferring general journal entry information to the ledger is called:
133.
A column in journals and ledger accounts that is used to cross reference journal and ledger
entries is the:
134.
The chronological record of each complete transaction that has occurred is called the:
135.
A business’s general journal provides a place for recording all of the following
except
:
136.
The balance column in a ledger account is:
137.
A general journal is:
138.
A record in which the effects of transactions are first recorded and from which transaction
amounts are posted to the ledger is a(n):
139.
Smiles Entertainment had the following accounts and balances at December 31:
Account
Debit
Credit
Cash
$10,000
Accounts Receivable
2,000
Prepaid Insurance
2,400
Supplies
1,000
Accounts Payable
$5,000
Common Stock
4,900
Service Revenue
7,000
Salaries Expense
500
Utilities Expense
1,000
Totals
$16,900
$16,900
Using the information in the table, calculate the company’s reported net income for the
period.
140.
Jackson Consulting, Inc. had the following accounts and balances at December 31:
Account
Debit
Credit
Cash
$20,000
Accounts
Receivable
6,000
Prepaid Insurance
1,500
Supplies
5,000
Accounts Payable
$500
Common Stock
16,200
Dividends
1,000
Service Revenue
20,000
Utilities Expense
2,000
Salaries Expense
1,200
Totals
$36,700
$36,700
Using the information in the table, calculate Jackson Consulting Inc.’s reported net income for
the period.
141.
Bologna Lodging, Inc. had the following accounts and balances, shown in random rather than
chart of accounts order, as of December 31:
Account
Debit
Credit
Cash
$20,000
Accounts Receivable
2,000
Salaries Expense
500
Accounts Payable
$4,000
Lodging Revenue
7,000
Utilities Expense
500
Prepaid Insurance
1,400
Supplies
1,500
Common Stock
14,900
Totals
$25,900
$25,900
Using the information in the table, calculate the total assets reported on Bologna’s balance
sheet for the period.
142.
At the end of its first month of operations, Michael’s Consulting Services, Inc. reported net
income of $25,000. They also had account balances of: Cash, $18,000; Office Supplies, $2,000
and Accounts Receivable $10,000. The stockholders’ total investment for this first month was
$5,000.
Calculate the ending balance in Stockholders’ Equity to be reported on the Balance Sheet.
143.
Identify the accounts that would normally have balances in the
debit
column of a business’s
trial balance.
144.
Identify the accounts that would normally have balances in the
credit
column of a business’s
trial balance.
145.
Which of the following is not a step in the accounting process?
146.
A bookkeeper has debited an account for $3,500 and credited a liability account for $2,000.
Which of the following would be an
incorrect
way to complete the recording of this
transaction?
147.
A report that lists a business’s accounts and their balances, in which the total debit balances
should equal the total credit balances, is called a(n):
148.
Custom Air purchased $5,000 of supplies on account. The correct journal entry to record this
transaction is:
149.
Masterworks purchased $17,000 of Equipment by signing a promissory note. The correct
journal entry to record this transaction is:
150.
The accountant for a new company is establishing the chart of accounts for the company
based on the accounts he expects to be used. He has decided to use a three digit account
number with each account type starting with a different number. Which of the following
numbers would you expect the
Asset
range to begin with?
151.
The accountant for a new company is establishing the chart of accounts for the company
based on the accounts she expects to be used. She has decided to use a three digit account
number with each account type starting with a different number. Which of the following
numbers would you expect the
Equity
range to begin with?
152.
Blade, Inc. has the following account balances at Dec 31 of the current year. What is the
correct missing balance for Retained Earnings?
Account
Debit
Credit
Cash
$13,000
Accounts Receivable
2,000
Prepaid Insurance
2,400
Supplies
1,000
Accounts Payable
$5,000
Common Stock
4,900
Retained Earnings ???
Service Revenue
7,000
Salaries Expense
500
Utilities Expense
1,000
Totals
153.
Blade, Inc. has the following account balances at Dec 31 of the current year. What is the
correct missing balance for Cash?
Account
Debit
Credit
Cash ????
Accounts Receivable
2,000
Prepaid Insurance
1,900
Supplies
500
Accounts Payable
$4,000
Common Stock
3,400
Retained Earnings
2,500
Service Revenue
5,000
Salaries Expense
500
Utilities Expense
1,000
Totals
154.
Identify the statement below that is
true
.
155.
While in the process of posting from the journal to the ledger, a company failed to post a $500
debit to the Equipment account. The effect of this error will be that: