MRTS 1342 Exam 1 UPDATED ACTUAL
Questions and CORRECT Answers
Define Asset - CORRECT ANSWER - Property of monetary value owned by a buisness
What are the steps of the accounting process? - CORRECT ANSWER - Analyze, record,
classifies, summarize, reports, interprets
Credit on expense account will ____________ it - CORRECT ANSWER - Decrease
What is the equation for balance sheet - CORRECT ANSWER - Assets = liability +
capital - withdrawal
Chart of Accounts - CORRECT ANSWER - A numbering system of accounts that lists the
account titles and account numbers to be used by a company.
Accounts payable will be shown on ______________ - CORRECT ANSWER - Balance
Sheet
Expanded Accounting Equation - CORRECT ANSWER - Assets = Liabilities + Capital -
Withdrawals + Revenue - Expenses
What is the first step in transactional analysis? - CORRECT ANSWER - Identify which
account it's applied to
Money supplied by the owner of business is an _______________ - CORRECT
ANSWER - Investment
Always expect the closing balance to be ______________ - CORRECT ANSWER -
Positive
, Where do balances on trial balance come from? - CORRECT ANSWER - Individual
ledger
T/F: Profit and Loss statement can be prepared at any time - CORRECT ANSWER -T
Which side is debit? Which side is credit? - CORRECT ANSWER - Debit- Left, Credit-
Right
Define Accounting - CORRECT ANSWER - Recording, classifying and summarizing
financial transactions. Summarizes the activities of bookkeeping
Where are revenue and expenses listed? - CORRECT ANSWER - Income statement
Define liability - CORRECT ANSWER - Obligation that comes due in the future, financial
rights or claims of creditors to assets
Definition of Debit - CORRECT ANSWER - Left hand side of account
Definition of Credit - CORRECT ANSWER - Right hand side of account
When Merchandise is sold, where should it fall under? - CORRECT ANSWER - Sales
What is net profit? - CORRECT ANSWER - When revenue equals more than expenses
What is posting? - CORRECT ANSWER - the process of transferring the information in
the journal to the appropriate ledger accounts
Questions and CORRECT Answers
Define Asset - CORRECT ANSWER - Property of monetary value owned by a buisness
What are the steps of the accounting process? - CORRECT ANSWER - Analyze, record,
classifies, summarize, reports, interprets
Credit on expense account will ____________ it - CORRECT ANSWER - Decrease
What is the equation for balance sheet - CORRECT ANSWER - Assets = liability +
capital - withdrawal
Chart of Accounts - CORRECT ANSWER - A numbering system of accounts that lists the
account titles and account numbers to be used by a company.
Accounts payable will be shown on ______________ - CORRECT ANSWER - Balance
Sheet
Expanded Accounting Equation - CORRECT ANSWER - Assets = Liabilities + Capital -
Withdrawals + Revenue - Expenses
What is the first step in transactional analysis? - CORRECT ANSWER - Identify which
account it's applied to
Money supplied by the owner of business is an _______________ - CORRECT
ANSWER - Investment
Always expect the closing balance to be ______________ - CORRECT ANSWER -
Positive
, Where do balances on trial balance come from? - CORRECT ANSWER - Individual
ledger
T/F: Profit and Loss statement can be prepared at any time - CORRECT ANSWER -T
Which side is debit? Which side is credit? - CORRECT ANSWER - Debit- Left, Credit-
Right
Define Accounting - CORRECT ANSWER - Recording, classifying and summarizing
financial transactions. Summarizes the activities of bookkeeping
Where are revenue and expenses listed? - CORRECT ANSWER - Income statement
Define liability - CORRECT ANSWER - Obligation that comes due in the future, financial
rights or claims of creditors to assets
Definition of Debit - CORRECT ANSWER - Left hand side of account
Definition of Credit - CORRECT ANSWER - Right hand side of account
When Merchandise is sold, where should it fall under? - CORRECT ANSWER - Sales
What is net profit? - CORRECT ANSWER - When revenue equals more than expenses
What is posting? - CORRECT ANSWER - the process of transferring the information in
the journal to the appropriate ledger accounts
