Question

that are used or converted into cash within the course of a calendar ompany's assets 36) year are called A) long-term assets. B) current assets C) fixed assets. D) equity E) current liabilities 37) Nancy owns a bakery. She has already gathered and examined the checks, credit card 37) receipts, sales slips, and other related evidence concerning specific transactions. also recorded each financial transaction in a journal and transferred into a ledger. What must Nancy do at the end of the accounting period? She has that information A) She must check her journal for mistakes. B) She must prepare a trial balance. C) She must throw away her ledger and start over. D) She must attest that she used generally accepted accounting principles. E) She must recheck all her source documents. 38) 38) Kevin works for the Internal Revenue Service. His main responsibility is rooting out evidence of cooked books at major companies. Kevin is a A) certified public B) criminal C) forensic D) noncertified E) private 39) Evelyn is a self-employed, state-certified accountant who files tax returns, prepares 39) financial records, and audits corporate financial records. She is known as a accountant. A) noncertified B) forensic C) certified management D) private E) certified public 40) The life expectancy of a $20 bill is estimated to be 7.7 years. Which of the following 40) characteristics of money does this statement illustrate? A) durability B) divisibility C) portability D) stability E) acceptability

Answer 1

36) Answer: B) current assets

Assets that are used or converted to cash within 12 months are known as current assets.

37) Answer: B) She must prepare a trial balance.

Nancy must prepare a trial balance summarizing all the ledger account balances and ensure that the debits and credits in the same are equal.

38) Answer: C) forensic

39) Answer: E) certified public

40) Answer: A) durability

Durability relates to the amount of physical wear and tear which determines the life expectancy.