MGMT 100 Quiz 4 Questions with Correct Answers Latest Update 2025/2026
The employees of an information technology company complain that the company has been
spending a lot of funds in wasteful activities, such as office renovation, instead of revising the
employees' salaries. In this case, the company should hire a(n) _____ to keep a check on the
company's expenses and prevent the problem from getting worse. - Answers internal auditor
_____ provide analysis and prepare reports and financial statements for their organization. -
Answers Management accountants
Lakeisha, a manager at an energy company, needs to create a financial document for the
company that will show how the company's operating, investing, and financing activities are
expected to affect the asset, liability, and owners' equity accounts. To prepare this document,
Lakeisha needs to collect data from__________. - Answers the budgeted income statement, the
capital expenditure budget, and the cash budget
Raffaello, an independent auditor, is assigned to perform an audit for a grocery company. After
the audit, he notices some serious lapses and discrepancies in the numbers mentioned in the
company's financial statements. In this scenario, Raffaello is most likely to offer a(n) _____
opinion in his audit report. - Answers adverse
Nahuatl Inc., a publicly traded firm based in Arizona, manufactures silk. According to U.S.
securities laws, the firm must___________. - Answers let an independent CPA (Certified Public
Accountant) firm perform an annual external audit of its financial statements
Calderon, a candy shop in New York, needs to sell all the goods in its inventory before they
perish. The bakery owners, Matt and Ashley, plan to use the cash received from selling the
goods to open a new outlet of Calderon in a different locality. In this scenario, the goods stored
in Calderon's inventory represent its _____. - Answers current assets
In the context of balance sheets, retained earnings are a major component of the _____ section. -
Answers owners' equity
In the context of budgeting, a flexible budget__________. - Answers is designed to show the
appropriate budgeted level of costs for each different level of sales
If an auditor doesn't find any problems with the way a firm's financial statements were prepared
and presented, the report will offer a(n) _____ opinion. - Answers unqualified
Jadranko, a financial accountant at a ride share company, is asked to calculate the net income
of the company for a given period. He deducts the cost of goods sold from the revenue earned
during that period. Before deducting the company's operating expenses from the gross profit,
he deducts the rent and the insurance premium paid by the company during that period. In the
given scenario, Jadranko deducted the company's _____ from the company's operating
expenses. - Answers administrative expenses
The employees of an information technology company complain that the company has been
spending a lot of funds in wasteful activities, such as office renovation, instead of revising the
employees' salaries. In this case, the company should hire a(n) _____ to keep a check on the
company's expenses and prevent the problem from getting worse. - Answers internal auditor
_____ provide analysis and prepare reports and financial statements for their organization. -
Answers Management accountants
Lakeisha, a manager at an energy company, needs to create a financial document for the
company that will show how the company's operating, investing, and financing activities are
expected to affect the asset, liability, and owners' equity accounts. To prepare this document,
Lakeisha needs to collect data from__________. - Answers the budgeted income statement, the
capital expenditure budget, and the cash budget
Raffaello, an independent auditor, is assigned to perform an audit for a grocery company. After
the audit, he notices some serious lapses and discrepancies in the numbers mentioned in the
company's financial statements. In this scenario, Raffaello is most likely to offer a(n) _____
opinion in his audit report. - Answers adverse
Nahuatl Inc., a publicly traded firm based in Arizona, manufactures silk. According to U.S.
securities laws, the firm must___________. - Answers let an independent CPA (Certified Public
Accountant) firm perform an annual external audit of its financial statements
Calderon, a candy shop in New York, needs to sell all the goods in its inventory before they
perish. The bakery owners, Matt and Ashley, plan to use the cash received from selling the
goods to open a new outlet of Calderon in a different locality. In this scenario, the goods stored
in Calderon's inventory represent its _____. - Answers current assets
In the context of balance sheets, retained earnings are a major component of the _____ section. -
Answers owners' equity
In the context of budgeting, a flexible budget__________. - Answers is designed to show the
appropriate budgeted level of costs for each different level of sales
If an auditor doesn't find any problems with the way a firm's financial statements were prepared
and presented, the report will offer a(n) _____ opinion. - Answers unqualified
Jadranko, a financial accountant at a ride share company, is asked to calculate the net income
of the company for a given period. He deducts the cost of goods sold from the revenue earned
during that period. Before deducting the company's operating expenses from the gross profit,
he deducts the rent and the insurance premium paid by the company during that period. In the
given scenario, Jadranko deducted the company's _____ from the company's operating
expenses. - Answers administrative expenses
