KAT EXAM - CSUSM UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Statement of Cash Flows
Answer:
why we care: helps predict future cash flows
•reconciles beginning and ending cash balances on the balance sheet
Question:
2. Accoutning
Answer:
The information system that measures business activities, processes that information into reports and
financial statements, and communicates the results to decision makers.
Question:
3. Financial Statements
Answer:
(IS) income statement (BS) balance sheet (RE) retained earnings (CF) cash flow
Question:
4. Accural Basis Accounting
Answer:
reporting income when it is earned and expenses when they are incurred
Question:
5. Cash Basis Accounting
Answer:
Reporting income when the cash is received and expenses when the cash is paid.
Question:
6. Accounting Cycle
Answer:
• analyze transactions
• journalize transactions
• post to ledger account
• adjusting entries
• adjusted trial balance
• financial statement
• closing entry
• post-closing trial balance
Question:
7. perpetual inventory system
, Answer:
An inventory system that keeps a running computerized record of merchandise inventory.
Question:
8. Accounting Equation
Answer:
Assets = Liabilities + Owner's Equity
Question:
9. Ledger
Answer:
the group of accounts maintained by a company
Question:
10. Recording Process
Answer:
1. Analyze each transaction in terms of its effect on the accounts.
2. Enter the transaction information in a journal.
3. Transfer the journal information to the appropriate accounts in the ledger.
Question:
11. Posting
Answer:
transferring information from a journal entry to a ledger account
Question:
12. Users of Accounting
Answer:
managers, stockholders, employees, creditors, suppliers, government agencies
Question:
13. post-closing trial balance
Answer:
a trial balance prepared after the closing entries are posted
Question:
14. Trial Balance
Answer:
a proof of the equality of debits and credits in a general ledger
Question:
15. Deferrals
Answer:
Adjusting entries for either prepaid expenses or unearned revenues.
Question:
16. Accural
CORRECT ANSWERS
Question:
1. Statement of Cash Flows
Answer:
why we care: helps predict future cash flows
•reconciles beginning and ending cash balances on the balance sheet
Question:
2. Accoutning
Answer:
The information system that measures business activities, processes that information into reports and
financial statements, and communicates the results to decision makers.
Question:
3. Financial Statements
Answer:
(IS) income statement (BS) balance sheet (RE) retained earnings (CF) cash flow
Question:
4. Accural Basis Accounting
Answer:
reporting income when it is earned and expenses when they are incurred
Question:
5. Cash Basis Accounting
Answer:
Reporting income when the cash is received and expenses when the cash is paid.
Question:
6. Accounting Cycle
Answer:
• analyze transactions
• journalize transactions
• post to ledger account
• adjusting entries
• adjusted trial balance
• financial statement
• closing entry
• post-closing trial balance
Question:
7. perpetual inventory system
, Answer:
An inventory system that keeps a running computerized record of merchandise inventory.
Question:
8. Accounting Equation
Answer:
Assets = Liabilities + Owner's Equity
Question:
9. Ledger
Answer:
the group of accounts maintained by a company
Question:
10. Recording Process
Answer:
1. Analyze each transaction in terms of its effect on the accounts.
2. Enter the transaction information in a journal.
3. Transfer the journal information to the appropriate accounts in the ledger.
Question:
11. Posting
Answer:
transferring information from a journal entry to a ledger account
Question:
12. Users of Accounting
Answer:
managers, stockholders, employees, creditors, suppliers, government agencies
Question:
13. post-closing trial balance
Answer:
a trial balance prepared after the closing entries are posted
Question:
14. Trial Balance
Answer:
a proof of the equality of debits and credits in a general ledger
Question:
15. Deferrals
Answer:
Adjusting entries for either prepaid expenses or unearned revenues.
Question:
16. Accural
