1|Page
MBA 601 Exam 1 -2026/2027 Newest Exam With
Verified Questions And 100% Correct Detailed
Answers||Already Graded A+
GreyCo and Sons earns $6,900 of revenue on account in
Year 1. Cash collections of receivables amount to $6,300
in Year 1 with the remainder being collected in Year 2.
Based on this information alone the company's financial
statements would show - ANSWER-a balance of $600 in
accounts receivable at the beginning Year 2.
Guadalupe, Inc. provided $5,000 of services in Year 1 but
did not collect cash from its customers until Year 2. Select
the correct answer from the following options assuming
Guadalupe used accrual accounting. - ANSWER-The
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Company will recognize $5,000 of revenue in Year 1 and
$5,000 of cash flow from operations in Year 2.
If interest rates go up - ANSWER-asset prices go down
You are considering purchasing a bond. The bond will pay
you $100 at the end of each year for three years. At the
end of the third year, the bond will also pay you back its
$1,000 face value. Assuming an 8% discount rate, how
much is this bond worth today? Round to the nearest
dollar. - ANSWER-$1,052
Today
?
,3|Page
1 year
$100- 92.5925926
2 year
$100- 85.733882
3 year
$100- 79.3832241
$1000- 793.832241
Add!
You have two investment options:
, 4|Page
Option A
You can purchase $2,000 of stock in a company. You
estimate that this company will earn a total of $10,000
during its life. You expect the company to pay all of these
earnings to you as a dividend 10 years from today.
Currently, the risk-free rate is 1% but this investment is
really risky and you feel that a 14% discount rate is
appropriate.
Option B
You can purchase $2,000 worth of bonds. The bond will
pay you $250 at the end of each year for three years. At
the end of the third year, the bond will also pay you back
its $2,000 face value. You feel that this is a very safe
investment and a 2% discount rate is appropriate.
MBA 601 Exam 1 -2026/2027 Newest Exam With
Verified Questions And 100% Correct Detailed
Answers||Already Graded A+
GreyCo and Sons earns $6,900 of revenue on account in
Year 1. Cash collections of receivables amount to $6,300
in Year 1 with the remainder being collected in Year 2.
Based on this information alone the company's financial
statements would show - ANSWER-a balance of $600 in
accounts receivable at the beginning Year 2.
Guadalupe, Inc. provided $5,000 of services in Year 1 but
did not collect cash from its customers until Year 2. Select
the correct answer from the following options assuming
Guadalupe used accrual accounting. - ANSWER-The
,2|Page
Company will recognize $5,000 of revenue in Year 1 and
$5,000 of cash flow from operations in Year 2.
If interest rates go up - ANSWER-asset prices go down
You are considering purchasing a bond. The bond will pay
you $100 at the end of each year for three years. At the
end of the third year, the bond will also pay you back its
$1,000 face value. Assuming an 8% discount rate, how
much is this bond worth today? Round to the nearest
dollar. - ANSWER-$1,052
Today
?
,3|Page
1 year
$100- 92.5925926
2 year
$100- 85.733882
3 year
$100- 79.3832241
$1000- 793.832241
Add!
You have two investment options:
, 4|Page
Option A
You can purchase $2,000 of stock in a company. You
estimate that this company will earn a total of $10,000
during its life. You expect the company to pay all of these
earnings to you as a dividend 10 years from today.
Currently, the risk-free rate is 1% but this investment is
really risky and you feel that a 14% discount rate is
appropriate.
Option B
You can purchase $2,000 worth of bonds. The bond will
pay you $250 at the end of each year for three years. At
the end of the third year, the bond will also pay you back
its $2,000 face value. You feel that this is a very safe
investment and a 2% discount rate is appropriate.
