MGMT 200 CHAPTER 3 EXAM
QUESTIONS AND ANSWERS
Which financial statement would report all of the following information: beginning
balances for common stock and retained earnings; current period net income or loss;
current period dividends; common stock issued during the year; ending balances of
common stock and retained earnings? - Answer-statement of stockholders equity
In an adjusting entry for expenses incurred but not yet paid ______. - Answer-a liability
is increasing since cash will be paid in the future due to the expense incurred
How do temporary accounts differ from permanent accounts? - Answer-Only temporary
accounts are cleared out at the end of the accounting period.
Closing entries move the balances from the ______ accounts into the Retained
Earnings account. - Answer-temporary
Which of the following statements regarding the statement of cash flows are correct? -
Answer-- repot cash receipts
- the final financial statement that is typically prepares
- reports cash disbursements
The classified balance sheet shows subtotals for current _____ and current ______ -
Answer-assets; liabilities
Income statement accounts for ______ accounts, while balance sheet accounts are
_______ accounts - Answer-temporary; permanent
The entries that transfer the balances of all temporary accounts to retained earnings are
referred to as - Answer-closing entries
During December, Mainzel Interior Design Corporation redecorated the reception areas
of a local hotel. The project was completed on December 31 with payment due in 30
days. Payment was received on January 21 of the following year. When should Mainzel
recognize the related revenue using accrual accounting? - Answer-december 31
How do adjusting entries for accrued expenses affect liabilities and expenses? -
Answer-Adjusting entries for accrued expenses can increase liabilities and increase
expenses.
QUESTIONS AND ANSWERS
Which financial statement would report all of the following information: beginning
balances for common stock and retained earnings; current period net income or loss;
current period dividends; common stock issued during the year; ending balances of
common stock and retained earnings? - Answer-statement of stockholders equity
In an adjusting entry for expenses incurred but not yet paid ______. - Answer-a liability
is increasing since cash will be paid in the future due to the expense incurred
How do temporary accounts differ from permanent accounts? - Answer-Only temporary
accounts are cleared out at the end of the accounting period.
Closing entries move the balances from the ______ accounts into the Retained
Earnings account. - Answer-temporary
Which of the following statements regarding the statement of cash flows are correct? -
Answer-- repot cash receipts
- the final financial statement that is typically prepares
- reports cash disbursements
The classified balance sheet shows subtotals for current _____ and current ______ -
Answer-assets; liabilities
Income statement accounts for ______ accounts, while balance sheet accounts are
_______ accounts - Answer-temporary; permanent
The entries that transfer the balances of all temporary accounts to retained earnings are
referred to as - Answer-closing entries
During December, Mainzel Interior Design Corporation redecorated the reception areas
of a local hotel. The project was completed on December 31 with payment due in 30
days. Payment was received on January 21 of the following year. When should Mainzel
recognize the related revenue using accrual accounting? - Answer-december 31
How do adjusting entries for accrued expenses affect liabilities and expenses? -
Answer-Adjusting entries for accrued expenses can increase liabilities and increase
expenses.
