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BBA2201 Columbia Southern Unit 4 Accounting and Financial Statements Quiz

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Unit 4 Test • Question 1 5 out of 5 points Liquidity is a measure of how __________. Selected Answer: quickly an asset may be converted into cash Correct Answer: quickly an asset may be converted into cash • Question 2 0 out of 5 points Brownstone Company has a current ratio of 4.00. This indicates that the company has $4 in __________. Selected Answer: total assets for every $1 of current liabilities Correct Answer: current assets for every $1 of current liabilities • Question 3 5 out of 5 points Reversing entries are __________. Selected Answer: the exact opposite of a prior adjusting entry Correct Answer: the exact opposite of a prior adjusting entry • Question 4 0 out of 5 points Which of the following is a permanent account? Selected Answer: Service revenue Correct Answer: Salaries payable • Question 5 0 out of 5 points Which of the following accounts will be closed by debiting the Income Summary account? Selected Answer: Service revenue Correct Answer: Salaries expense • Question 6 5 out of 5 points Assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year, are called __________ assets. Selected Answer: current Correct Answer: current • Question 7 5 out of 5 points Which of the following is the most liquid asset? Selected Answer: Cash Correct Answer: Cash • Question 8 5 out of 5 points The financial statements are prepared fr ...
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