Ferg Acctg Bellringer 16 Financial

Which of the following is NOT an asset for a company?

• Land payment

• Accounts receivable

• Cash

• Equipment

Double entry accounting requires that for every one transaction there will be at least _____ accounts affected.

• 2

• 4

• 3

• 10

Rinate Company Ltd has the following details available:

Net Income is $123,200

Total asset valued at $258,600

Total Liabilities valued at $25300

Total Equity valued at $40000

Calculate the Return on Assets.

• 0.48

• 6.47

• 0.10

• 8.91

ABC Automotive Corporation purchased a new car lift for their repair center. The payment for their car lift is due within 10 months of purchase. What would this be characterized as, and why?

• Current Liability, because the bill is due within 12 months.

• Non-Current Liability, because the bill is due within 24 months.

• Current Liability, because any bill that requires payment in under 5 years is a current liability.

• Owner's Equity, because the lift is owned by the company's management.

What is the difference between profit and profitability?

• Profit is what is left of revenue after all business expenses are paid and profitability is the ability to make a profit

• Nothing, they are synonymous

• Profit is a measure related to a product while profitability is a measure related to the entire business

• Profit is a measure used internally by a business while profitability is a measure used by investors

Using the image of the balance sheet, what is this company's current ratio?

• 1.46

• 1.48

• .49

• 1.49

Jarett orders and purchases two laptops for his company usage on account. The ordered laptops amounted to $1,200. Identify the two accounts that are used for this transaction.

• Asset account and accounts payable account

• Accounts payable account and utilities expense account

• Inventory account and debit account

• Liability account and accounts receivable account

Rachel's Interior Design Firm has several different accounts used to track their finances, which is common in business. Rachel's Interior Design Firm receives a check from Susie Johnson for interior design work the company performed at Susie's home. Which account should this money be recorded?

• Revenue

• Expense

• Services Rendered

• Asset

Once source documents are in hand, where is the journal entry recorded?'

• Accounting journal

• Statement of Retained Earnings

• Balance Sheet

• Income Statement

The visuals that are used to help accounting professionals see the effects of transactions on accounts are called _____.

• T-accounts

• Debits

• Journals

• Credits