MBA 612 Week #2 Exam Study Guide With
Complete Solutions
Which of the following accounts would require an adjustment when making an adjusting
entry for a deferral? - ANSWER Unearned Rent
MMC Inc. recorded the receipt from cash sales of $2,600 as $6,200. This error is
adjusted on the bank reconciliation as a(n) ____. - ANSWER $3,600 deduction from the
cash balance per books
Which of the following transactions will affect the profitability metric of a company? -
ANSWER Fees received in cash for services provided
Cash and other assets that are expected to be converted to cash or sold or used up
within one year or less through the normal operations of the business are called _____. -
ANSWER Current Assets
Denominator in the ratio of cash to monthly cash expense is calculated as _____. -
ANSWER Chose these 3 options. earnings before taxes divided by 12,
net cash flows from operations divided by 12, total revenues divided by 12
Which of the following is normally the result of cash being received or paid before the
revenue is earned or the expense is incurred? - ANSWER A deferred expense
Which of the following is an accrued expense? - ANSWER Rent owed but not yet paid
When cash is received in payment of an account receivable, which section of the
Statement of Cash Flows is affected? - ANSWER Cash Flow from Operating Activities
If a company's net cash flows from operating activities is $1,500,000 for a year and its
Complete Solutions
Which of the following accounts would require an adjustment when making an adjusting
entry for a deferral? - ANSWER Unearned Rent
MMC Inc. recorded the receipt from cash sales of $2,600 as $6,200. This error is
adjusted on the bank reconciliation as a(n) ____. - ANSWER $3,600 deduction from the
cash balance per books
Which of the following transactions will affect the profitability metric of a company? -
ANSWER Fees received in cash for services provided
Cash and other assets that are expected to be converted to cash or sold or used up
within one year or less through the normal operations of the business are called _____. -
ANSWER Current Assets
Denominator in the ratio of cash to monthly cash expense is calculated as _____. -
ANSWER Chose these 3 options. earnings before taxes divided by 12,
net cash flows from operations divided by 12, total revenues divided by 12
Which of the following is normally the result of cash being received or paid before the
revenue is earned or the expense is incurred? - ANSWER A deferred expense
Which of the following is an accrued expense? - ANSWER Rent owed but not yet paid
When cash is received in payment of an account receivable, which section of the
Statement of Cash Flows is affected? - ANSWER Cash Flow from Operating Activities
If a company's net cash flows from operating activities is $1,500,000 for a year and its
