FINANCIAL AND MANAGERIAL ACCOUNTING
FOR MBAS EXAM PREP QUESTIONS AND
ANSWERS FULLY VERIFIED
◉ Revenues.
Answer: The amounts recognized when the company sells products
or provides services to customers
◉ Expenses.
Answer: costs of providing products and services and other business
activities during the current period
◉ Net Income.
Answer: The difference between revenues and expenses, also known
as earnings or profit. Revenues - Expenses
◉ Dividends.
Answer: Distributions to stockholders, usually in the form of cash
payments (not considered expenses)
◉ Revenue Recognition Principle.
, Answer: Revenue is recorded in the period in which goods and
services are provided to the customer
◉ Expense Recognition (Matching Principle).
Answer: Any costs used to generate revenues are recorded as
expenses in the same period as those revenues
◉ Matching expenses with revenues.
Answer: allows net income to provide a more useful measure of a
company's operating performance
◉ Accural Basis Accounting.
Answer: the method of accounting that recognizes revenue when it
is earned and matches expenses to the revenues they helped
produce
◉ Cash Basis Accounting.
Answer: Reporting income when the cash is received and expenses
when the cash is paid.
◉ Assets.
Answer: Resources of the company
FOR MBAS EXAM PREP QUESTIONS AND
ANSWERS FULLY VERIFIED
◉ Revenues.
Answer: The amounts recognized when the company sells products
or provides services to customers
◉ Expenses.
Answer: costs of providing products and services and other business
activities during the current period
◉ Net Income.
Answer: The difference between revenues and expenses, also known
as earnings or profit. Revenues - Expenses
◉ Dividends.
Answer: Distributions to stockholders, usually in the form of cash
payments (not considered expenses)
◉ Revenue Recognition Principle.
, Answer: Revenue is recorded in the period in which goods and
services are provided to the customer
◉ Expense Recognition (Matching Principle).
Answer: Any costs used to generate revenues are recorded as
expenses in the same period as those revenues
◉ Matching expenses with revenues.
Answer: allows net income to provide a more useful measure of a
company's operating performance
◉ Accural Basis Accounting.
Answer: the method of accounting that recognizes revenue when it
is earned and matches expenses to the revenues they helped
produce
◉ Cash Basis Accounting.
Answer: Reporting income when the cash is received and expenses
when the cash is paid.
◉ Assets.
Answer: Resources of the company
