MRTS 1342 Exam 1 Questions with Revised Answers
What is net profit? - Answer-When revenue equals more than expenses
What is posting? - Answer-the process of transferring the information in the journal to the appropriate ledger accounts
What is general journaling? - Answer-List of busines...
What is net profit? - Answer-When revenue equals more than expenses
What is posting? - Answer-the process of transferring the information in the journal to
the appropriate ledger accounts
What is general journaling? - Answer-List of business transactions in chronological
order
What does the post closing balance sheet contain? - Answer-Columns for the account
number, account description, debit balance, credit balance
What is GAAP? - Answer-Generally accepted accounting principles. A set of rules and
practices, having substantial authortitative support, that accounting profession
recognizes as a general guideline for a financial reporting purposes
What is a balance sheet - Answer-Statements, as of a particular date, that shows the
amount of assets owned by a business as well as the amount of claims against these
assets
Total sales show up on ___________ - Answer-Income statement
Examples of assets & liabilities - Answer-Assets - cash, inventory, land
Liabilities - debt, accounts payable, taxes owed
Where does credit balance that is owed show up at? - Answer-Accounts payable
Define Accounting - Answer-Recording, classifying and summarizing financial
transactions. Summarizes the activities of bookkeeping
Where are revenue and expenses listed? - Answer-Income statement
Define liability - Answer-Obligation that comes due in the future, financial rights or
claims of creditors to assets
Definition of Debit - Answer-Left hand side of account
Definition of Credit - Answer-Right hand side of account
When Merchandise is sold, where should it fall under? - Answer-Sales
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