MBUS 300 Chapter 1 Smartbook
questions with answers already
passed
Resource providers use accounting information to identify companies with high earnings
potential because those companies are better able to ________ - ANS ✔✔share profits
make interest payments
pay higher salaries
The needs of external stakeholders, such as investors and creditors is provided by ______
accounting information. - ANS ✔✔financial
The accounting term normally used to describe organizations that are not motivated by
earnings is ______. - ANS ✔✔nonprofit
The measurement rules established by the Financial Accounting Standards Board are called -
ANS ✔✔generally accepted accounting principles
A business that consumes $3,000 of resources to make a product that is sold for $4,000 has
earnings or _____________ of $1000 - ANS ✔✔profit
Stakeholders who use accounting information include ______. - ANS ✔✔newspaper reporters
investors
the federal government
creditors
, Which of the following stakeholders would most likely use managerial accounting information? -
ANS ✔✔a restaurant manager
Which of the following is a not-for-profit organization? - ANS ✔✔alabama public schools
David Harbert recently started a business. During the first few days of operation, Mr. Harbert
transferred cash from his personal account into a business account for a company he named
Harbert Enterprises. Mr. Harbert's brother, George, invested cash in Harbert Enterprises for
which he received a 25% ownership interest in the company. Harbert Enterprises borrowed cash
from First Federal Bank. Harbert Enterprises paid cash to purchase a building from City
Properties, Inc. How many reporting entities are mentioned in this scenario? - ANS ✔✔5
Companies must follow generally accepted accounting principles (GAAP) for _______________
accounting reports, but not for ____________________ (financial/managerial) accounting
reports. - ANS ✔✔(a) financial
(b) managerial
Which of the following statements about assets are true? (Select all that apply.) - ANS ✔✔-
assets are resources used in the process of generating revenue
- a business may acquire assets from three sources including creditors, investors, and its
operations
A home builder used $80,000 of materials and $70,000 of labor to build a house that was sold
for $160,000. Profit equals ______. - ANS ✔✔$10,000
Detailed information about the accounting equation is maintained in records commonly called -
ANS ✔✔accounts
Which of the following is not a normal requirement to have a certified public accountant (CPA)
designation? - ANS ✔✔4 years of work experience
questions with answers already
passed
Resource providers use accounting information to identify companies with high earnings
potential because those companies are better able to ________ - ANS ✔✔share profits
make interest payments
pay higher salaries
The needs of external stakeholders, such as investors and creditors is provided by ______
accounting information. - ANS ✔✔financial
The accounting term normally used to describe organizations that are not motivated by
earnings is ______. - ANS ✔✔nonprofit
The measurement rules established by the Financial Accounting Standards Board are called -
ANS ✔✔generally accepted accounting principles
A business that consumes $3,000 of resources to make a product that is sold for $4,000 has
earnings or _____________ of $1000 - ANS ✔✔profit
Stakeholders who use accounting information include ______. - ANS ✔✔newspaper reporters
investors
the federal government
creditors
, Which of the following stakeholders would most likely use managerial accounting information? -
ANS ✔✔a restaurant manager
Which of the following is a not-for-profit organization? - ANS ✔✔alabama public schools
David Harbert recently started a business. During the first few days of operation, Mr. Harbert
transferred cash from his personal account into a business account for a company he named
Harbert Enterprises. Mr. Harbert's brother, George, invested cash in Harbert Enterprises for
which he received a 25% ownership interest in the company. Harbert Enterprises borrowed cash
from First Federal Bank. Harbert Enterprises paid cash to purchase a building from City
Properties, Inc. How many reporting entities are mentioned in this scenario? - ANS ✔✔5
Companies must follow generally accepted accounting principles (GAAP) for _______________
accounting reports, but not for ____________________ (financial/managerial) accounting
reports. - ANS ✔✔(a) financial
(b) managerial
Which of the following statements about assets are true? (Select all that apply.) - ANS ✔✔-
assets are resources used in the process of generating revenue
- a business may acquire assets from three sources including creditors, investors, and its
operations
A home builder used $80,000 of materials and $70,000 of labor to build a house that was sold
for $160,000. Profit equals ______. - ANS ✔✔$10,000
Detailed information about the accounting equation is maintained in records commonly called -
ANS ✔✔accounts
Which of the following is not a normal requirement to have a certified public accountant (CPA)
designation? - ANS ✔✔4 years of work experience
