Goals Achievement: Chapter Four

Select the appropriate response.

If the subtotal amounts in the income statement columns of a worksheet reveal debits in excess of credits, then which is indicated?

net income   or   net loss

Which account types are closed at the end of an accounting period?

nominal accounts   or   real accounts

The post-closing trial balance would consist of which account types?

income statement accounts   or   balance sheet accounts

A post-closing trial balance is prepared:

before closing   or   after closing

Whether or not a company utilizes reversing entries, identical financial statements should be achieved.

right   or   wrong

The relevant time period related to the definition of current assets is one year or the operating cycle, whichever is:

longer   or   shorter

Which should precede the other on a classified balance sheet?

long-term investments   or   property, plant, & equipment

If a company has a current ratio of 2, and then pays half of its current liabilities from current assets, the current ratio would become:

3   or   4

Current assets minus current liabilities is defined as:

working capital   or   current ratio