BMGT 110F Final UPDATED Exam
Questions and CORRECT Answers
3 financial statements - CORRECT ANSWER - 1. Balance Sheet
2. Income Statement
3. Statement of Cash Flows
Balance Sheet - CORRECT ANSWER - assets= = liabilities + owners equity
Income Statement - CORRECT ANSWER - Revenue - COGS= Gross Profit - Expenses=
Net Profit
Statement of Cash Flows - CORRECT ANSWER - A financial statement that provides
financial information about the cash receipts and cash payments of a business for a specific
period of time.
Monetary vs Fiscal Policy - CORRECT ANSWER - Fiscal Policy: government efforts to
influence the economy through taxation and spending
Monetary Policy: Federal Reserve decisions that shape the economy by influencing interest rates
and the supply of money
3 types of taxes - CORRECT ANSWER - 1. income
2. corporate
3. capital gain
Should leaders always act the same? - CORRECT ANSWER - No, leaders should "flex"
their management style based on situation
Best type of organization based on taxes and liabilites - CORRECT ANSWER - LLC
, dividend vs distribution - CORRECT ANSWER - dividend-profit from publicly traded
company
distribution- profit from private company
SEC and Federal Reserve functions - CORRECT ANSWER - SEC and the Federal
Reserve Board are both agencies that regulate the financial markets and institutions in the United
States
Break Even Point Formula - CORRECT ANSWER - Expenses/(marginal revenue-
marginal cost)
Accrual vs. Cash Basis Accounting - CORRECT ANSWER - Accrual = records when
incurred (more common)
Cash basis = recorded when expenses paid and revenues received
consumer price index - CORRECT ANSWER - monthly statistics that measure the pace of
inflation or deflation
What time of economy is the US? - CORRECT ANSWER - mix of capitalism (free trade)
and socialism (food stamps, health care, social security)
4 ways to deal with scarcity - CORRECT ANSWER - 1. first come, first serve
2. strongest wins
3. government decides
4. free market capitalism
Least to most risky investments - CORRECT ANSWER - 1. cash
2. bonds
3. public securities
Questions and CORRECT Answers
3 financial statements - CORRECT ANSWER - 1. Balance Sheet
2. Income Statement
3. Statement of Cash Flows
Balance Sheet - CORRECT ANSWER - assets= = liabilities + owners equity
Income Statement - CORRECT ANSWER - Revenue - COGS= Gross Profit - Expenses=
Net Profit
Statement of Cash Flows - CORRECT ANSWER - A financial statement that provides
financial information about the cash receipts and cash payments of a business for a specific
period of time.
Monetary vs Fiscal Policy - CORRECT ANSWER - Fiscal Policy: government efforts to
influence the economy through taxation and spending
Monetary Policy: Federal Reserve decisions that shape the economy by influencing interest rates
and the supply of money
3 types of taxes - CORRECT ANSWER - 1. income
2. corporate
3. capital gain
Should leaders always act the same? - CORRECT ANSWER - No, leaders should "flex"
their management style based on situation
Best type of organization based on taxes and liabilites - CORRECT ANSWER - LLC
, dividend vs distribution - CORRECT ANSWER - dividend-profit from publicly traded
company
distribution- profit from private company
SEC and Federal Reserve functions - CORRECT ANSWER - SEC and the Federal
Reserve Board are both agencies that regulate the financial markets and institutions in the United
States
Break Even Point Formula - CORRECT ANSWER - Expenses/(marginal revenue-
marginal cost)
Accrual vs. Cash Basis Accounting - CORRECT ANSWER - Accrual = records when
incurred (more common)
Cash basis = recorded when expenses paid and revenues received
consumer price index - CORRECT ANSWER - monthly statistics that measure the pace of
inflation or deflation
What time of economy is the US? - CORRECT ANSWER - mix of capitalism (free trade)
and socialism (food stamps, health care, social security)
4 ways to deal with scarcity - CORRECT ANSWER - 1. first come, first serve
2. strongest wins
3. government decides
4. free market capitalism
Least to most risky investments - CORRECT ANSWER - 1. cash
2. bonds
3. public securities
