MGT 8803 Exam 1 | Questions and Answers |
2025/2026 Update | 100% Correct | A+ Graded –
Georgia Tech
Section 1: Introduction
This document includes the verified and complete Exam 1 content for MGT 8803 – Business
Fundamentals for Analytics at Georgia Tech, fully updated for the 2025/2026 academic
cycle. It covers foundational topics such as accounting principles, basic financial concepts,
and introductory data analysis. Each question is accompanied by a 100% correct and
professor-reviewed answer, offering students an A+ graded reference for optimal
performance on this initial exam.
Section 2: Exam Questions and Answers
Format: Case-based and conceptual multiple-choice questions
Four answer choices per question (A–D)
Correct answer highlighted
Where needed, a rationale is included to explain the selection
1. Question 1: What is the primary purpose of accounting?
(a) To manage daily operations
(b) To record and report financial transactions
(c) To design marketing campaigns
(d) To oversee supply chain logistics
Rationale: Accounting tracks financial activities for decision-making.
2. Question 2: Which account increases with a debit?
(a) Revenue
(b) Assets
(c) Liabilities
(d) Equity
Rationale: Debits increase asset accounts under double-entry accounting.
3. Question 3: What does the balance sheet represent?
(a) Profit over a period
(b) Financial position at a specific point in time
(c) Cash flows over time
(d) Operational efficiency
Rationale: It shows assets, liabilities, and equity at a given date.
, 4. Question 4: Which financial concept measures a company's ability to pay debts?
(a) Profit margin
(b) Liquidity
(c) Revenue growth
(d) Market share
Rationale: Liquidity assesses short-term debt payment capacity.
5. Question 5: What is the basic formula for the accounting equation?
(a) Revenue - Expenses = Profit
(b) Assets = Liabilities + Equity
(c) Cash In - Cash Out = Net Income
(d) Debt - Equity = Net Worth
Rationale: This is the foundation of double-entry bookkeeping.
6. Question 6: Which data analysis technique identifies trends?
(a) Random sampling
(b) Time series analysis
(c) Static reporting
(d) Qualitative review
Rationale: Time series analysis tracks data over time.
7. Question 7: What does a credit do to a liability account?
(a) Decreases it
(b) Increases it
(c) Has no effect
(d) Balances it with assets
Rationale: Credits increase liability accounts.
8. Question 8: Which financial statement shows cash inflows and outflows?
(a) Income Statement
(b) Cash Flow Statement
(c) Balance Sheet
(d) Equity Statement
Rationale: It tracks cash movement over a period.
9. Question 9: What is a key benefit of introductory data analysis?
(a) Eliminates all business risks
(b) Provides insights for decision-making
(c) Replaces financial reporting
2025/2026 Update | 100% Correct | A+ Graded –
Georgia Tech
Section 1: Introduction
This document includes the verified and complete Exam 1 content for MGT 8803 – Business
Fundamentals for Analytics at Georgia Tech, fully updated for the 2025/2026 academic
cycle. It covers foundational topics such as accounting principles, basic financial concepts,
and introductory data analysis. Each question is accompanied by a 100% correct and
professor-reviewed answer, offering students an A+ graded reference for optimal
performance on this initial exam.
Section 2: Exam Questions and Answers
Format: Case-based and conceptual multiple-choice questions
Four answer choices per question (A–D)
Correct answer highlighted
Where needed, a rationale is included to explain the selection
1. Question 1: What is the primary purpose of accounting?
(a) To manage daily operations
(b) To record and report financial transactions
(c) To design marketing campaigns
(d) To oversee supply chain logistics
Rationale: Accounting tracks financial activities for decision-making.
2. Question 2: Which account increases with a debit?
(a) Revenue
(b) Assets
(c) Liabilities
(d) Equity
Rationale: Debits increase asset accounts under double-entry accounting.
3. Question 3: What does the balance sheet represent?
(a) Profit over a period
(b) Financial position at a specific point in time
(c) Cash flows over time
(d) Operational efficiency
Rationale: It shows assets, liabilities, and equity at a given date.
, 4. Question 4: Which financial concept measures a company's ability to pay debts?
(a) Profit margin
(b) Liquidity
(c) Revenue growth
(d) Market share
Rationale: Liquidity assesses short-term debt payment capacity.
5. Question 5: What is the basic formula for the accounting equation?
(a) Revenue - Expenses = Profit
(b) Assets = Liabilities + Equity
(c) Cash In - Cash Out = Net Income
(d) Debt - Equity = Net Worth
Rationale: This is the foundation of double-entry bookkeeping.
6. Question 6: Which data analysis technique identifies trends?
(a) Random sampling
(b) Time series analysis
(c) Static reporting
(d) Qualitative review
Rationale: Time series analysis tracks data over time.
7. Question 7: What does a credit do to a liability account?
(a) Decreases it
(b) Increases it
(c) Has no effect
(d) Balances it with assets
Rationale: Credits increase liability accounts.
8. Question 8: Which financial statement shows cash inflows and outflows?
(a) Income Statement
(b) Cash Flow Statement
(c) Balance Sheet
(d) Equity Statement
Rationale: It tracks cash movement over a period.
9. Question 9: What is a key benefit of introductory data analysis?
(a) Eliminates all business risks
(b) Provides insights for decision-making
(c) Replaces financial reporting
