LATEST MGMT1000 EXAM 2024-2025
QUESTIONS WITH 100% CORRECT ANSWERS
Which of the following is an example of owners' equity? Select all that apply.
A Shares of a competitor's stock owned by the business
B Cash received from owner contributions
C Net income for the first four months of the fiscal year - CORRECT ANSWER C
Which of the following is an example of an expense? Select all that apply.
A The cost of a home store's inventory of glassware that is thrown away because they
were broken.
B Cash received by a computer repair company for repairs made.
C Fuel used for a company's delivery trucks last month. - CORRECT ANSWER A,C
Which of the following arises when Taxable Income is less than Income Before Taxes due
to a temporary timing difference?
A Taxes Payable
B Deferred Tax Liability
C Deferred Tax Asset
D Tax Expense - CORRECT ANSWER B
Suppose Proto Co. issued a long-term bond and received $350,000 cash from the
issuance during 2015. The company also issued 15,000 shares of common stock for
$360,000. At the end of the year, Proto paid $265,000 for the dividend declared last
year.
What would be the net impact of these transactions on Proto's 2015 statement of cash
flows under US GAAP?
, LATEST MGMT1000 EXAM 2024-2025
QUESTIONS WITH 100% CORRECT ANSWERS
A $710,000 would be shown as an increase in the Financing Section and the $265,000
would be shown as a decrease in the Operating Section.
B $360,000 would be shown as an increase in the Financing Section and the $350,000
would be shown as an increase in the Investing Section.
C $445,000 would be shown as an increase in the Financing Section.
D $360,000 would be shown as an increase in the Financing Section, the $350,000
would be shown as an increase in the Investing Section, and the $265,000 would be
shown as a decrease in the Operating Section. - CORRECT ANSWER C
Suppose Tritex Manufacturing lent $225,000 to Invivo Pharma. On December 31, 2015,
Invivo paid back the $225,000 and also paid $10,000 interest to Tritex.
Under U.S.GAAP, what would be the impact of the repayment on Tritex's statement of
cash flows using the direct method?
A The $225,000 would be shown as an increase in the funds in the Financing Section but
the $10,000 would be shown as an increase in the Investing Section.
B The $235,000 would be shown as an increase in the funds in the Operating Section.
C The $225,000 would be shown as an increase in the funds in the Investing Section but
the $10,000 would be shown as an increase in the Operating Section.
D The $235,000 would be shown as an increase in the funds in the Investing Section. -
CORRECT ANSWER C
Which of the following accounts decreases with a credit? Select all that apply.
QUESTIONS WITH 100% CORRECT ANSWERS
Which of the following is an example of owners' equity? Select all that apply.
A Shares of a competitor's stock owned by the business
B Cash received from owner contributions
C Net income for the first four months of the fiscal year - CORRECT ANSWER C
Which of the following is an example of an expense? Select all that apply.
A The cost of a home store's inventory of glassware that is thrown away because they
were broken.
B Cash received by a computer repair company for repairs made.
C Fuel used for a company's delivery trucks last month. - CORRECT ANSWER A,C
Which of the following arises when Taxable Income is less than Income Before Taxes due
to a temporary timing difference?
A Taxes Payable
B Deferred Tax Liability
C Deferred Tax Asset
D Tax Expense - CORRECT ANSWER B
Suppose Proto Co. issued a long-term bond and received $350,000 cash from the
issuance during 2015. The company also issued 15,000 shares of common stock for
$360,000. At the end of the year, Proto paid $265,000 for the dividend declared last
year.
What would be the net impact of these transactions on Proto's 2015 statement of cash
flows under US GAAP?
, LATEST MGMT1000 EXAM 2024-2025
QUESTIONS WITH 100% CORRECT ANSWERS
A $710,000 would be shown as an increase in the Financing Section and the $265,000
would be shown as a decrease in the Operating Section.
B $360,000 would be shown as an increase in the Financing Section and the $350,000
would be shown as an increase in the Investing Section.
C $445,000 would be shown as an increase in the Financing Section.
D $360,000 would be shown as an increase in the Financing Section, the $350,000
would be shown as an increase in the Investing Section, and the $265,000 would be
shown as a decrease in the Operating Section. - CORRECT ANSWER C
Suppose Tritex Manufacturing lent $225,000 to Invivo Pharma. On December 31, 2015,
Invivo paid back the $225,000 and also paid $10,000 interest to Tritex.
Under U.S.GAAP, what would be the impact of the repayment on Tritex's statement of
cash flows using the direct method?
A The $225,000 would be shown as an increase in the funds in the Financing Section but
the $10,000 would be shown as an increase in the Investing Section.
B The $235,000 would be shown as an increase in the funds in the Operating Section.
C The $225,000 would be shown as an increase in the funds in the Investing Section but
the $10,000 would be shown as an increase in the Operating Section.
D The $235,000 would be shown as an increase in the funds in the Investing Section. -
CORRECT ANSWER C
Which of the following accounts decreases with a credit? Select all that apply.
