ACCOUNTING 211 Liberty University -ACCT 211 EXAM 2 with answers 100% correct

ACCT 211 EXAM 2 Accounting Cycle - correct answer Recurring steps performed each accounting period, starting with analyzing transactions and continuing through the post-closing trail balance (or reverse entries) Classified Balance Sheet - correct answer Balance sheet that presents assets and liabilities in relevant subgroups, including current and noncurrent classifications Closing Entries - correct answer Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, gain, expense, loss, and withdrawal (dividend for a corporation) accounts to the capital account (to retained earnings for a corporation) Closing Process - correct answer Necessary end-of-period steps to prepare the accounts for recording the transactions of the next period Current Assets - correct answer Cash and other assets expected to be sold, collected, or used within one year or the company's operating cycle, whichever is longer Current Liabilities - correct answer Obligations due to be paid or settled within one year or the company's operating cycle, whichever is longer Current Ratio - correct answer Ratio used to evaluate a company's ability to pay its short-term obligations, calculated by dividing current assets by current liabilities Income Summary - correct answer Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred; its balance is transferred to the capital account (or retained earnings for a corporation) Intangible Assets - correct answer Long-term assets (resources) used to produce or sell products or services; usually lack physical form and have uncertain benefits. Long-term Investments - correct answer Long-term assets not used in operating activities such