MGT 8803 SUPPLY CHAIN CORE EXAM SET 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔A clean financial statement audit opinion will state that the financial statements are
accurate (t/f) - ✔✔False
✔✔The form of business that is legally separate from its owners - ✔✔Corporation
✔✔Depreciation, deferred revenue, accounts payable, wages payable, dividends
payable - which of these is not a liability? - ✔✔depreciation
✔✔Intangible assets, pre-paid expenses, cash, marketable securities, or accounts
receivable - which is not a current asset? - ✔✔intangible assets
✔✔Dividend expense, marketing expenses, cost of goods sold, depreciation expense,
bad debt expense - which of these is not included as an expense on the income
statement? - ✔✔Dividend expense
✔✔A firm reports the following income statement items for FY2020: sales of
$60,550,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of
goods sold of $34,025,000; and interest expense of $750,000. The firm also declared
and paid $947,250 in dividends in FY2020. What is the amount of the firms Net Income
Before Interest and Taxes? - ✔✔16,410,000
✔✔Does depreciation represent cash outflow from a firm? - ✔✔No
✔✔(True/False). A firm's balance sheet provides a representation of the current market
value for the company. - ✔✔False
✔✔What happens in accrual based accounting? - ✔✔Revenues are recognized when
earned rather than when the cash is collected
✔✔ What are the three forms of business? - ✔✔Proprietorship, partnership, and
corporations
✔✔A proprietorship/partnership has limited liability? - ✔✔False
✔✔What are the accounting assumptions? - ✔✔Separate entity, consistent unit of
measurement (currency), going concern, periodicity, and materiality
✔✔Materiality - ✔✔only information that would influence the decisions of a reliant party
need be disclosed
QUESTIONS AND SOLUTIONS RATED A+
✔✔A clean financial statement audit opinion will state that the financial statements are
accurate (t/f) - ✔✔False
✔✔The form of business that is legally separate from its owners - ✔✔Corporation
✔✔Depreciation, deferred revenue, accounts payable, wages payable, dividends
payable - which of these is not a liability? - ✔✔depreciation
✔✔Intangible assets, pre-paid expenses, cash, marketable securities, or accounts
receivable - which is not a current asset? - ✔✔intangible assets
✔✔Dividend expense, marketing expenses, cost of goods sold, depreciation expense,
bad debt expense - which of these is not included as an expense on the income
statement? - ✔✔Dividend expense
✔✔A firm reports the following income statement items for FY2020: sales of
$60,550,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of
goods sold of $34,025,000; and interest expense of $750,000. The firm also declared
and paid $947,250 in dividends in FY2020. What is the amount of the firms Net Income
Before Interest and Taxes? - ✔✔16,410,000
✔✔Does depreciation represent cash outflow from a firm? - ✔✔No
✔✔(True/False). A firm's balance sheet provides a representation of the current market
value for the company. - ✔✔False
✔✔What happens in accrual based accounting? - ✔✔Revenues are recognized when
earned rather than when the cash is collected
✔✔ What are the three forms of business? - ✔✔Proprietorship, partnership, and
corporations
✔✔A proprietorship/partnership has limited liability? - ✔✔False
✔✔What are the accounting assumptions? - ✔✔Separate entity, consistent unit of
measurement (currency), going concern, periodicity, and materiality
✔✔Materiality - ✔✔only information that would influence the decisions of a reliant party
need be disclosed
