MBUS 300 EXAM 1 questions well
answered graded A+ 2025/2026
An asset use event causes a(n) ______. - ANS ✔✔decrease in an asset account and a decrease
in a liability or stockholders' equity account
The needs of external stakeholders, such as investors and creditors is provided by ______
accounting information. - ANS ✔✔financial
Which of the following statements about assets are true? - ANS ✔✔1) A business may acquire
assets from three sources including creditors, investors, and its operations.
2) Assets are resources used in the process of generating revenue.
Acquiring cash by issuing common stock will have no effect on ______. - ANS ✔✔1) liabilities
2) retained earnings
An event that causes one asset account to decrease and another asset account to increase is
called an asset transaction. (Enter only one word per blank.) - ANS ✔✔exchange
The difference between the cost of a product or service and the selling price of that product or
service is called ______. - ANS ✔✔1) value-added
2) earnings
3) profit
4) income
Asset use transactions include ______. - ANS ✔✔1) paying dividends
2) repaying debt
, 3) paying expenses
The resources a business uses to conduct its operations are called - ANS ✔✔assets
Acquiring cash by issuing common stock will cause ______. - ANS ✔✔both the left and right
sides of the accounting equation to increase
When a company pays cash to purchase land, the total amount of assets and liabilities ______. -
ANS ✔✔Do not change
Green Company has $10,000 of assets. Fifty percent of the assets were acquired from the issue
of common stock and thirty percent were acquired from earnings. Based on this information,
the dollar value of liabilities must be ______. - ANS ✔✔$2000
Reason:
Liabilities had to be 20% because the right side of the accounting equation represents 100% of
total assets. (100% - 50% - 30% = 20%). Liabilities = $10,000 total assets x 20% = $2,000.
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
The market for business resources involves three distinct participants: consumers, conversion
agents and resource - ANS ✔✔owners or providers
Stakeholders who use accounting information include ______. - ANS ✔✔creditors
the federal government
investors
answered graded A+ 2025/2026
An asset use event causes a(n) ______. - ANS ✔✔decrease in an asset account and a decrease
in a liability or stockholders' equity account
The needs of external stakeholders, such as investors and creditors is provided by ______
accounting information. - ANS ✔✔financial
Which of the following statements about assets are true? - ANS ✔✔1) A business may acquire
assets from three sources including creditors, investors, and its operations.
2) Assets are resources used in the process of generating revenue.
Acquiring cash by issuing common stock will have no effect on ______. - ANS ✔✔1) liabilities
2) retained earnings
An event that causes one asset account to decrease and another asset account to increase is
called an asset transaction. (Enter only one word per blank.) - ANS ✔✔exchange
The difference between the cost of a product or service and the selling price of that product or
service is called ______. - ANS ✔✔1) value-added
2) earnings
3) profit
4) income
Asset use transactions include ______. - ANS ✔✔1) paying dividends
2) repaying debt
, 3) paying expenses
The resources a business uses to conduct its operations are called - ANS ✔✔assets
Acquiring cash by issuing common stock will cause ______. - ANS ✔✔both the left and right
sides of the accounting equation to increase
When a company pays cash to purchase land, the total amount of assets and liabilities ______. -
ANS ✔✔Do not change
Green Company has $10,000 of assets. Fifty percent of the assets were acquired from the issue
of common stock and thirty percent were acquired from earnings. Based on this information,
the dollar value of liabilities must be ______. - ANS ✔✔$2000
Reason:
Liabilities had to be 20% because the right side of the accounting equation represents 100% of
total assets. (100% - 50% - 30% = 20%). Liabilities = $10,000 total assets x 20% = $2,000.
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
The market for business resources involves three distinct participants: consumers, conversion
agents and resource - ANS ✔✔owners or providers
Stakeholders who use accounting information include ______. - ANS ✔✔creditors
the federal government
investors
