MGT 8803 SUPPLY CHAIN MAIN EXAMINATION SET
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔What are the three types of financial statements? (gone over so far) - ✔✔Balance
sheet, income statement, statement of cash flows
✔✔Why is accuracy not a quality of a financial statement? - ✔✔Too much judgment is
involved
✔✔Which quality of financial statements conflicts with objectivity? - ✔✔Decision
relevance
✔✔What are the three categories of a balance sheet? - ✔✔assets, liabilities, and
owner's equity
✔✔What is the accounting equation? - ✔✔Assets = Liabilities + Owner's Equity
✔✔Accounting equation details - what is the left side? - ✔✔resources available
✔✔Accounting equation details - what is the right side? - ✔✔sources of funding
provided by creditors/who has claim to assets
✔✔Assets - ✔✔resources owned or rights to receive resources
✔✔What are the categories of assets? - ✔✔physical, intangible, legal rights
✔✔What are some common asset accounts? - ✔✔cash. AR, buildings & equipment,
inventory, copyright/patents
✔✔Historical Cost Principle - ✔✔An accounting principle that states that companies
should record assets at their cost.
✔✔Liabilities - ✔✔obligations owed to creditors in form of money or good/services
✔✔What are some common liability accounts? - ✔✔Accounts payable, notes payable,
accrued salaries, deferred revenues
✔✔What is a current asset? - ✔✔Cash plus other assets that are expected to be sold or
converted to cash during the current operating cycle (usually within a year)
✔✔What is a current liability? - ✔✔A liability expected to be paid within 12 months or
less
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔What are the three types of financial statements? (gone over so far) - ✔✔Balance
sheet, income statement, statement of cash flows
✔✔Why is accuracy not a quality of a financial statement? - ✔✔Too much judgment is
involved
✔✔Which quality of financial statements conflicts with objectivity? - ✔✔Decision
relevance
✔✔What are the three categories of a balance sheet? - ✔✔assets, liabilities, and
owner's equity
✔✔What is the accounting equation? - ✔✔Assets = Liabilities + Owner's Equity
✔✔Accounting equation details - what is the left side? - ✔✔resources available
✔✔Accounting equation details - what is the right side? - ✔✔sources of funding
provided by creditors/who has claim to assets
✔✔Assets - ✔✔resources owned or rights to receive resources
✔✔What are the categories of assets? - ✔✔physical, intangible, legal rights
✔✔What are some common asset accounts? - ✔✔cash. AR, buildings & equipment,
inventory, copyright/patents
✔✔Historical Cost Principle - ✔✔An accounting principle that states that companies
should record assets at their cost.
✔✔Liabilities - ✔✔obligations owed to creditors in form of money or good/services
✔✔What are some common liability accounts? - ✔✔Accounts payable, notes payable,
accrued salaries, deferred revenues
✔✔What is a current asset? - ✔✔Cash plus other assets that are expected to be sold or
converted to cash during the current operating cycle (usually within a year)
✔✔What is a current liability? - ✔✔A liability expected to be paid within 12 months or
less
