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MGMT 200 Exam 1 Questions And
Correct Answers/ Latest Update /
Already Graded
QUIZ:accounting is a system of maintaining records of a company's operations and
communicating that to decision makers.
true or false?
Ans: true
what makes accounting a valuable discipline?
a. it stores financial information in accounts
b. provides information to make decisions
c. records events and transactions
d. produces financial reports
Ans: b. provides information to make decisions
financial accounting does not deal with which of the following?
a. measuring a company's economic activity
b. preparing financial reports
c. communicating financial results to investors
d. providing information to internal users
Ans: d. providing information to internal users
which of the following groups is NOT among the external users for whom financial
statements are prepared?
a. creditors
b. managers
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c. regulators
d. investors
e. customers
Ans: b. managers
product profitability reports for a business are considered
a. financial accounting
b. managerial accounting
Ans: b. managerial accounting
preparing a budget for a business is considered
a. financial accounting
b. managerial accounting
Ans: b. managerial accounting
which of the following would NOT be an objective of external users reading a
company's financial statements
a. understanding the current financial statements of the company
b. assessing the company's contribution to social politics
c. predicting the company's future financial performance
d. evaluating the company's ability to generate cash from the business
Ans: b. assessing the company's contribution to social politics
what is the primary purpose of financial accounting?
a. communicate business activities to internal management
b. determine the amount of tax liabilities owed to various government jurisdictions
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c. measure the profitability of the company in order to assist employees with making
decisions
d. measure business activities and communicate those measures to external users to
make decisions
Ans: d. measure business activities and communicate those measures to
external users to make decisions
when a company receives a product previously ordered, a recordable accounting
transaction has occurred
a. yes
b. no
Ans: a. yes
when a company inquires about the availability of inventory, a transaction has
occurred
a. yes
b. no
Ans: b. no
when payment is received for services not yet rendered, no entry is recorded until that
service has been rendered
a. true
b. false
Ans: b. false
which of the following business events is not a transaction recorded in financial
accounting
a. purchasing a service
b. paying wages
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c. receiving goods
d. signing an agreement with a supplier
Ans: d. signing an agreement with a supplier
an alternative form of the accounting equation is:
a. net income = revenues - expenses
b. assets = liabilities - stockholders' equity
c. assets - liabilities = stockholder's equity
d. stockholders' equity = assets + liabilities
Ans: c. assets - liabilities = stockholders' equity
the resources of a company are referred to as:
a. suppliers
b. assets
c. liabilities
d. creditors
Ans: b. assets
liabilities can be best described as:
a. the amount owed to creditors
b. the amount of services provided to customers during the year
c. the amount of expenses over the past year
d. the amount expected to be distributed to stockholders
Ans: a. the amount owed to creditors
what is the best definition of an asset?
MGMT 200 Exam 1 Questions And
Correct Answers/ Latest Update /
Already Graded
QUIZ:accounting is a system of maintaining records of a company's operations and
communicating that to decision makers.
true or false?
Ans: true
what makes accounting a valuable discipline?
a. it stores financial information in accounts
b. provides information to make decisions
c. records events and transactions
d. produces financial reports
Ans: b. provides information to make decisions
financial accounting does not deal with which of the following?
a. measuring a company's economic activity
b. preparing financial reports
c. communicating financial results to investors
d. providing information to internal users
Ans: d. providing information to internal users
which of the following groups is NOT among the external users for whom financial
statements are prepared?
a. creditors
b. managers
,2|Page
c. regulators
d. investors
e. customers
Ans: b. managers
product profitability reports for a business are considered
a. financial accounting
b. managerial accounting
Ans: b. managerial accounting
preparing a budget for a business is considered
a. financial accounting
b. managerial accounting
Ans: b. managerial accounting
which of the following would NOT be an objective of external users reading a
company's financial statements
a. understanding the current financial statements of the company
b. assessing the company's contribution to social politics
c. predicting the company's future financial performance
d. evaluating the company's ability to generate cash from the business
Ans: b. assessing the company's contribution to social politics
what is the primary purpose of financial accounting?
a. communicate business activities to internal management
b. determine the amount of tax liabilities owed to various government jurisdictions
,3|Page
c. measure the profitability of the company in order to assist employees with making
decisions
d. measure business activities and communicate those measures to external users to
make decisions
Ans: d. measure business activities and communicate those measures to
external users to make decisions
when a company receives a product previously ordered, a recordable accounting
transaction has occurred
a. yes
b. no
Ans: a. yes
when a company inquires about the availability of inventory, a transaction has
occurred
a. yes
b. no
Ans: b. no
when payment is received for services not yet rendered, no entry is recorded until that
service has been rendered
a. true
b. false
Ans: b. false
which of the following business events is not a transaction recorded in financial
accounting
a. purchasing a service
b. paying wages
, 4|Page
c. receiving goods
d. signing an agreement with a supplier
Ans: d. signing an agreement with a supplier
an alternative form of the accounting equation is:
a. net income = revenues - expenses
b. assets = liabilities - stockholders' equity
c. assets - liabilities = stockholder's equity
d. stockholders' equity = assets + liabilities
Ans: c. assets - liabilities = stockholders' equity
the resources of a company are referred to as:
a. suppliers
b. assets
c. liabilities
d. creditors
Ans: b. assets
liabilities can be best described as:
a. the amount owed to creditors
b. the amount of services provided to customers during the year
c. the amount of expenses over the past year
d. the amount expected to be distributed to stockholders
Ans: a. the amount owed to creditors
what is the best definition of an asset?
