MBUS 300 Exam 1 practice with
verified answers 2025/2026
statement information " is the responsibility of the company" - ANS ✔✔Management letter
Income statement communicates - ANS ✔✔revenues less expenses during a period of time
Equity investor - ANS ✔✔person who provides money to a company through the original money
never has to be repaid, and who may be entitled to receive periodic cash payments
Who prepares financial reports for a particular company? - ANS ✔✔company's management
Which of the following appears on a income statement? - ANS ✔✔interest revenue
Current assets are - ANS ✔✔all assets that are expected to be converted to cash in the near
future
Which of the following is a liability? - ANS ✔✔wages payable
Which one of the following groups of accounts contains only current assets? - ANS ✔✔cash,
accounts receivable, merchandise inventory
Be recognizing economic effects of inflation on the accounting financial statements, which
accounting assumption is ignored?- - ANS ✔✔stable dollar assumption
, The most common point of revenue recognition is - ANS ✔✔when the goods are delivered to
the customer
Which of the following are exceptions to financial accounting measurements? - ANS
✔✔conservatism and materiality
Which of the following changes describes the purchase of 3,000 inventory on credit? - ANS
✔✔assets and liabilities increase by 3000
Providing 5000 of services to customers on account causes - ANS ✔✔assets and shareholders
equity to increase by 5000
For the basic accounting equation to stay in balance, each transaction recorded must - ANS
✔✔affect two or more accounts
Which of the following statements is true? - ANS ✔✔credits decrease assets and increase
liabilities
Which of the following decreases the receipt of 6000 from the issuance of common stock? - ANS
✔✔debit assets and credit shareholders equity for 6000
Which of the following is a required characteristic of accruals and deferrals? - ANS ✔✔an asset
or a liability will always be affected
When an adjusting entry for depreciation expense for the accounting period is recorded - ANS
✔✔assets and shareholders equity decrease
The beginning balance in the supplies account was 0. During June, supplies were acquired at a
cost of 2400. At June 30 actual supplies on hand totaled 500. The credit part of the adjusting
entry required at the end of June is - ANS ✔✔supplies of 1900
verified answers 2025/2026
statement information " is the responsibility of the company" - ANS ✔✔Management letter
Income statement communicates - ANS ✔✔revenues less expenses during a period of time
Equity investor - ANS ✔✔person who provides money to a company through the original money
never has to be repaid, and who may be entitled to receive periodic cash payments
Who prepares financial reports for a particular company? - ANS ✔✔company's management
Which of the following appears on a income statement? - ANS ✔✔interest revenue
Current assets are - ANS ✔✔all assets that are expected to be converted to cash in the near
future
Which of the following is a liability? - ANS ✔✔wages payable
Which one of the following groups of accounts contains only current assets? - ANS ✔✔cash,
accounts receivable, merchandise inventory
Be recognizing economic effects of inflation on the accounting financial statements, which
accounting assumption is ignored?- - ANS ✔✔stable dollar assumption
, The most common point of revenue recognition is - ANS ✔✔when the goods are delivered to
the customer
Which of the following are exceptions to financial accounting measurements? - ANS
✔✔conservatism and materiality
Which of the following changes describes the purchase of 3,000 inventory on credit? - ANS
✔✔assets and liabilities increase by 3000
Providing 5000 of services to customers on account causes - ANS ✔✔assets and shareholders
equity to increase by 5000
For the basic accounting equation to stay in balance, each transaction recorded must - ANS
✔✔affect two or more accounts
Which of the following statements is true? - ANS ✔✔credits decrease assets and increase
liabilities
Which of the following decreases the receipt of 6000 from the issuance of common stock? - ANS
✔✔debit assets and credit shareholders equity for 6000
Which of the following is a required characteristic of accruals and deferrals? - ANS ✔✔an asset
or a liability will always be affected
When an adjusting entry for depreciation expense for the accounting period is recorded - ANS
✔✔assets and shareholders equity decrease
The beginning balance in the supplies account was 0. During June, supplies were acquired at a
cost of 2400. At June 30 actual supplies on hand totaled 500. The credit part of the adjusting
entry required at the end of June is - ANS ✔✔supplies of 1900
