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AC251: Chapter 4 Review

Professor: Vega-Anaya
Horizontales
Long-term resources used to produce or sell products and services and that lack physical form
Payable and Unearned
The next step in the accounting cycle, after financial statements are prepared.
Helps assess the company’s ability to pay its debts in the near future.
List of account balances AFTER adjusting entries have been recorded and posted.
Revenue, Expense, Income Summary and Withdrawals are considered _________ accounts because they are closed at the end of the accounting period.
Assets that are expected to be sold, collected, or used within one year or the company’s operating cycle
Another word for non current.
Tangible long-lived assets used to produce or sell products and services
Companies prefer to have a _____ current ratio.
A current asset
An intangible asset
Verticales
What is left over in equity after the closing process.
Revenue and Expense accounts are closed here.
Prepare this statement using asset and liability account from the trial balance; and pull updated capital balance from the statement of owner's equity.
Aids the preparation of financial statements but is NOT a required report.
A plant asset.
Liabilities or obligations not due within the longer of one year or the company’s operating cycle.
Closing entries reset revenue, expense, and withdrawal account balances to ________ at the end of the period.
This cycle begins with analyzing transactions and ends with a post-closing trial balance.
The owner’s claim on the assets
Prepaid and Receivables