MGMT 200 Final Exam questions with answers

MGMT 200 Final Exam questions with |\ |\ |\ |\ |\ |\




answers

When is revenue reported in the income statement? -
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CORRECT ANSWERS ✔✔after the earnings process has
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been completed |\




What are the steps in the earning's process? - CORRECT
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ANSWERS ✔✔contract established, seller's obligation is
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identified, contract price is measurable, seller's obligation
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is satisfied
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What are the 3 types of business organizations? -
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CORRECT ANSWERS ✔✔proprietorships, partnerships and
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corporations


What is considered an accounting entity? - CORRECT
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ANSWERS ✔✔separation of resources between business
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and owner |\




What type of businesses are considered an accounting
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entity? - CORRECT ANSWERS ✔✔proprietorships,
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partnerships and corporations |\ |\

,What is considered a legal entity? - CORRECT ANSWERS
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✔✔legal separation between business and owner
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(business sues, files tax returns, etc.) |\ |\ |\ |\ |\




What type of businesses are considered legal entities? -
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CORRECT ANSWERS ✔✔corporations |\ |\




How easy is it for proprietorships and partnerships to
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transfer ownership? - CORRECT ANSWERS ✔✔difficult
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(owner leaves/dies so does the business)
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How easy is it for corporations to transfer ownership? -
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CORRECT ANSWERS ✔✔easy (owners leave all the time
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and business carries on)
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Is there mutual agency for proprietorships and
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partnerships? - CORRECT ANSWERS ✔✔yes (owners can |\ |\ |\ |\ |\ |\ |\



act on behalf of anyone)
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Is there mutual agency for corporations? - CORRECT
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ANSWERS ✔✔no (shareholders cannot act on their own) |\ |\ |\ |\ |\ |\ |\




What is fundraising like for proprietorships and
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partnerships? - CORRECT ANSWERS ✔✔limited |\ |\ |\ |\

, What is fundraising like for corporations? - CORRECT
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ANSWERS ✔✔access to capital markets
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What is a type I adjustment? - CORRECT ANSWERS ✔✔a
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deferral, cash is collected before revenue is earned
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What are the results of a type I adjustment? - CORRECT
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ANSWERS ✔✔liabilities decrease, revenue increases
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What would happen if a type I adjustment was not made?
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- CORRECT ANSWERS ✔✔assets N/A liabilities O
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shareholder's equity U net income U |\ |\ |\ |\ |\




What is a type II adjustment? - CORRECT ANSWERS ✔✔a
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deferral, cash is distributed before expense is incurred
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What are the results of a type II adjustment? - CORRECT
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ANSWERS ✔✔assets decrease, expenses increase
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What would happen if a type II adjustment was not made?
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- CORRECT ANSWERS ✔✔assets O liabilities N/A
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shareholder's equity O net income O |\ |\ |\ |\ |\




What is a type III adjustment? - CORRECT ANSWERS
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✔✔accrual, cash is collected after revenue is earned
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