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MGMT 200 Final Exam Questions And
Correct Answers/ Latest Update /
Already Graded
QUIZ:When is revenue reported in the income statement?
Ans: after the earnings process has been completed
What are the steps in the earning's process?
Ans: contract established, seller's obligation is identified, contract price is
measurable, seller's obligation is satisfied
What are the 3 types of business organizations?
Ans: proprietorships, partnerships and corporations
What is considered an accounting entity?
Ans: separation of resources between business and owner
What type of businesses are considered an accounting entity?
Ans: proprietorships, partnerships and corporations
What is considered a legal entity?
Ans: legal separation between business and owner (business sues, files
tax returns, etc.)
What type of businesses are considered legal entities?
Ans: corporations
How easy is it for proprietorships and partnerships to transfer ownership?
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Ans: difficult (owner leaves/dies so does the business)
How easy is it for corporations to transfer ownership?
Ans: easy (owners leave all the time and business carries on)
Is there mutual agency for proprietorships and partnerships?
Ans: yes (owners can act on behalf of anyone)
Is there mutual agency for corporations?
Ans: no (shareholders cannot act on their own)
What is fundraising like for proprietorships and partnerships?
Ans: limited
What is fundraising like for corporations?
Ans: access to capital markets
What is a type I adjustment?
Ans: a deferral, cash is collected before revenue is earned
What are the results of a type I adjustment?
Ans: liabilities decrease, revenue increases
What would happen if a type I adjustment was not made?
Ans: assets N/A liabilities O shareholder's equity U net income U
What is a type II adjustment?
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Ans: a deferral, cash is distributed before expense is incurred
What are the results of a type II adjustment?
Ans: assets decrease, expenses increase
What would happen if a type II adjustment was not made?
Ans: assets O liabilities N/A shareholder's equity O net income O
What is a type III adjustment?
Ans: accrual, cash is collected after revenue is earned
What are the results of a type III adjustment?
Ans: assets increase, revenue increases
What would happen if a type III adjustment was not made?
Ans: assets U liabilities N/A shareholder's equity U net income U
What is a type IV adjustment?
Ans: accrual, cash is distributed after expense incurred
What are the results of a type IV adjustment?
Ans: liabilities increase, expenses increase
What would happen if a type IV adjustment was not made?
Ans: assets N/A liabilities U shareholder's equity O net income O
Who are the users of accounting information?
MGMT 200 Final Exam Questions And
Correct Answers/ Latest Update /
Already Graded
QUIZ:When is revenue reported in the income statement?
Ans: after the earnings process has been completed
What are the steps in the earning's process?
Ans: contract established, seller's obligation is identified, contract price is
measurable, seller's obligation is satisfied
What are the 3 types of business organizations?
Ans: proprietorships, partnerships and corporations
What is considered an accounting entity?
Ans: separation of resources between business and owner
What type of businesses are considered an accounting entity?
Ans: proprietorships, partnerships and corporations
What is considered a legal entity?
Ans: legal separation between business and owner (business sues, files
tax returns, etc.)
What type of businesses are considered legal entities?
Ans: corporations
How easy is it for proprietorships and partnerships to transfer ownership?
,2|Page
Ans: difficult (owner leaves/dies so does the business)
How easy is it for corporations to transfer ownership?
Ans: easy (owners leave all the time and business carries on)
Is there mutual agency for proprietorships and partnerships?
Ans: yes (owners can act on behalf of anyone)
Is there mutual agency for corporations?
Ans: no (shareholders cannot act on their own)
What is fundraising like for proprietorships and partnerships?
Ans: limited
What is fundraising like for corporations?
Ans: access to capital markets
What is a type I adjustment?
Ans: a deferral, cash is collected before revenue is earned
What are the results of a type I adjustment?
Ans: liabilities decrease, revenue increases
What would happen if a type I adjustment was not made?
Ans: assets N/A liabilities O shareholder's equity U net income U
What is a type II adjustment?
, 3|Page
Ans: a deferral, cash is distributed before expense is incurred
What are the results of a type II adjustment?
Ans: assets decrease, expenses increase
What would happen if a type II adjustment was not made?
Ans: assets O liabilities N/A shareholder's equity O net income O
What is a type III adjustment?
Ans: accrual, cash is collected after revenue is earned
What are the results of a type III adjustment?
Ans: assets increase, revenue increases
What would happen if a type III adjustment was not made?
Ans: assets U liabilities N/A shareholder's equity U net income U
What is a type IV adjustment?
Ans: accrual, cash is distributed after expense incurred
What are the results of a type IV adjustment?
Ans: liabilities increase, expenses increase
What would happen if a type IV adjustment was not made?
Ans: assets N/A liabilities U shareholder's equity O net income O
Who are the users of accounting information?
