MBA Principles Accounting trial
Exam questions and answers
Which of the following statements support the reliability and usefulness of financial
information?✔✔Accounting information is likely to be accurate.
Accounting information is likely to be objective
Accounting information is likely to be consistent.
Which of the following statements correctly describes how accounting helps
managers?✔✔Accounting centralizes and organizes processes.
Bob plans to allow certain customers to pay in installments during the next 4 months.
What kind of planning is this? How can accounting assist him in this
process?✔✔Bob shows short-term planning. He can use the accounting system to
set up accounts receivable, as well as keep track of how much each customer owes
and payments made.
What are internal controls?✔✔Controls to manage the risk of loss and fraud within a
company
How does accounting affect daily activities?✔✔Accounting captures daily business
transactions for future reporting.
A company plans to spend $40,000 on advertising 5 years from now. What kind of
goal is this?✔✔It is a long-term goal.
What is the meaning of timeliness in accounting?✔✔Timeliness allow accountants to
provide information in time for managers to use it.
What is the relationship between daily activities and accounting in
companies?✔✔Companies need accounting when they receive and pay a bill.
How can accounting minimize company losses?✔✔Accounting an show managers
information that can help minimize losses.
What is the relationship between employee motivation and
accounting?✔✔Accounting reports can motivate employees.
What are current assets?✔✔Those that a company will use within a year
Larry's company owes $100,000 to the bank on a note due with interest 3 years from
now. How would this note be classified on the balance sheet?✔✔The balance sheet
would show the $100,000 as a long-term liability.
Which of the following statements correctly describes equity on a balance
sheet?✔✔Equity is the amount left after liabilities are deducted from assets.
Exam questions and answers
Which of the following statements support the reliability and usefulness of financial
information?✔✔Accounting information is likely to be accurate.
Accounting information is likely to be objective
Accounting information is likely to be consistent.
Which of the following statements correctly describes how accounting helps
managers?✔✔Accounting centralizes and organizes processes.
Bob plans to allow certain customers to pay in installments during the next 4 months.
What kind of planning is this? How can accounting assist him in this
process?✔✔Bob shows short-term planning. He can use the accounting system to
set up accounts receivable, as well as keep track of how much each customer owes
and payments made.
What are internal controls?✔✔Controls to manage the risk of loss and fraud within a
company
How does accounting affect daily activities?✔✔Accounting captures daily business
transactions for future reporting.
A company plans to spend $40,000 on advertising 5 years from now. What kind of
goal is this?✔✔It is a long-term goal.
What is the meaning of timeliness in accounting?✔✔Timeliness allow accountants to
provide information in time for managers to use it.
What is the relationship between daily activities and accounting in
companies?✔✔Companies need accounting when they receive and pay a bill.
How can accounting minimize company losses?✔✔Accounting an show managers
information that can help minimize losses.
What is the relationship between employee motivation and
accounting?✔✔Accounting reports can motivate employees.
What are current assets?✔✔Those that a company will use within a year
Larry's company owes $100,000 to the bank on a note due with interest 3 years from
now. How would this note be classified on the balance sheet?✔✔The balance sheet
would show the $100,000 as a long-term liability.
Which of the following statements correctly describes equity on a balance
sheet?✔✔Equity is the amount left after liabilities are deducted from assets.
