MRTS 1342 Test Questions and Answers
three methods commonly used to calculate depreciation - Answer-1. Straight line method
2. unit of production method
3. double declining balance
Statement of Partners' Equity - Answer-financial statement that reveals each partners ownership percentage of th...
MRTS 1342 Test Questions
and Answers
three methods commonly used to calculate depreciation - Answer-1. Straight line
method
2. unit of production method
3. double declining balance
Statement of Partners' Equity - Answer-financial statement that reveals each partners
ownership percentage of the firms capital
permanent (real) accounts - Answer-a= l+c
liquidation - Answer-occurs when a business closes or terminated and sells its assets to
pay creditors and liabilities and partners are paid off
temporary (nominal) accounts - Answer-w+r-e
horizontal analysis - Answer-two or more periods side by side, increase or decrease
between periods
balances are carried over from one accounting period to another - Answer-permanent/
real accounts
Accounts Payable - Answer-Amounts to be paid in the future for goods or services
already acquired
accountant - Answer-A person who plans, summarizes, analyzes, and interprets
accounting information.
accounts Receivable is an - Answer-asset account
bookkeeper - Answer-someone who records the transactions of a business
accounts payable Is an - Answer-a liability account
what are the three financial statements - Answer-balance sheet, statements of owners
equity, income statement
Net Purchases Formula - Answer-gross purchases- PRA- purchase discounts
, formula for balance sheet - Answer-Assets = Liabilities + Owner's Equity
formula for statement of owners equity - Answer-C-W+R=E
what does the purchase journal record - Answer-records all purchases by the company
paid on account
what does the cash payment journal record - Answer-records when the company pays
cash
trend analysis - Answer-a type of horizontal analysis, percentage of changes in a certain
item over several years
balances are NOT carried over from one accounting period to another; balances are set
at zero at the beginning of each accounting period - Answer-Temporary/ nominal
accounts
vertical analysis - Answer-allows companies to analyze each item without Dollar
amounts Getting in the way
Deposit (ticket) slip - Answer-a bank form that lists cash items and checks to be
deposited
Current Ratio - Answer-current assets - current liabilities
Trailing Edge - Answer-left side of back of check
acid ratio test - Answer-current assets- merchandise inventory- prepaid expense /
current liabilities
blank endorsement - Answer-having no words other than the signature of the endorser
Accounts Receivable Turnover - Answer-Net Sales / Average Accounts Receivable
determines how many times a year a company can turn accounts receivable into cash
Special/Full Endorsement - Answer-Transfers payment of a check to someone else;
"pay to the order of" followed by person/business to whom payment of the check is
being transferred, followed by your signature
Average Collection Period - Answer-365 days/ receivables turnover
displays how many days to collect
Net Pay - Answer-what you take home after taxes
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
