MGMT 200 (Purdue) Exam 1| 150 QUESTIONS| WITH COMPLETE SOLUTION

MGMT 200 (Purdue) Exam 1| 150 QUESTIONS| WITH COMPLETE SOLUTIONPreparing a budget for a business is considered A. financial accounting. B. managerial accounting B Accounting is the information system that A. measures business activities B. communicates the results to decision makers C. processes information into reports D. all of the above. D Which of the following is not an external user of a business's financial information? A. Taxing authorities B. Customers C. Employees D. Investors C Which statement below best describes the accounting equation? A. The change in retained earnings equals net income less dividends. B. Equality of revenue and expense transactions over time. C. Financing activities equal investing and operating activities. D. Resources of the company equal creditors' and owners' claims to those resources. D Owners' claims to the company's resources are referred to as: A. Liabilities. B. Assets. C. Stockholders' equity. D. Net liabilities. C If total assets of a company equal $25,000 and total stockholders' equity equals $10,000, then total liabilities equal $15,000. A. True B. False A Amounts owed to suppliers for supplies purchased on account are defined as a(n): A. Revenue. B. Asset. C. Liability. D. Expense C If total liabilities of a company equal $29,000 and total stockholders' equity equals $15,000, then total assets equal $14,000. A. True B. False B Financial accounting does not deal with which of the following? A. Measuring a company's economic activity. B. Providing information to internal users. C. Preparing financial reports. D. Communicating financial results to investors. B The accounting equation shows that a company's resources equal creditors' and owners' claims to those resources. A. True B. False A An alternative form of the accounting equation is: A. Assets ‐ Liabilities = Stockholders' Equity. B. Net Income = Revenues ‐ Expenses. C. Stockholders' Equity = Assets + Liabilities. D. Assets = Liabilities ‐ Stockholders' Equity. A