Stuck on a few questions from my Accounting class. If anyone can help; I would be really grateful!
32. Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?
A. income summary
B. owner's capital
C. accounts payable
D. depreciation expense
(I think it's B)
31. Comparative reports in which each item is expressed as a percentage of a base amount without dollar amounts are called __________.
A. comparative financial statements
B. common-size statements
C. cash flow analysis
D. horizontal analysis
(I think it's C)
28. Scott Company had a current ratio of 2.76:1 in Year 1 and 2.57:1 in Year 2. This change in current ratio indicates __________.
A. the company's debt paying ability has improved
B. the company's debt paying ability has weakened
C. the company's customers are paying their accounts sooner
D. the company is able to sell its inventory faster
(not sure)
27. Liquidity ratios measure __________.
A. how effectively a company is using its equity
B. how effectively a company is using its liabilities
C. a company's ability to pay shareholders
D. a company's ability to pay off short-term debts
(my guess D)
26. For vertical analysis purposes, a base item on a balance sheet is __________.
A. total assets
B. total equity
C. total liabilities
D. net equity
25. How do you close the expense accounts?
A. debit Capital; credit the expense accounts
B. credit Capital; debit the expense accounts
C. credit Income Summary; debit the expense accounts
D. debit Income Summary; credit the expense accounts
( my answer C)
23. The correct order for closing accounts is __________.
A. revenue, expenses, income summary, withdrawals
B. revenue, income summary, expenses, withdrawals
C. revenue, expenses, capital, withdrawals
D. revenue, capital, expenses, withdrawals
(my answer B)
22. Debt management ratios measure __________.
A. how effectively a company is using its cash
B. how well a company is using debt versus equity position
C. a company's ability to earn profit
D. a company's ability to meet payable obligations
(my answer A)