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MGMT 200 Exam 1 Questions And Correct
Answers/ Latest Update / Already Graded
accounting is a system of maintaining records of a company's
operations and communicating that to decision makers.
true or false?
Ans: true
what makes accounting a valuable discipline?
a. it stores financial information in accounts
b. provides information to make decisions
c. records events and transactions
d. produces financial reports
Ans: b. provides information to make decisions
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financial accounting does not deal with which of the following?
a. measuring a company's economic activity
b. preparing financial reports
c. communicating financial results to investors
d. providing information to internal users
Ans: d. providing information to internal users
which of the following groups is NOT among the external users for
whom financial statements are prepared?
a. creditors
b. managers
c. regulators
d. investors
e. customers
Ans: b. managers
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product profitability reports for a business are considered
a. financial accounting
b. managerial accounting
Ans: b. managerial accounting
preparing a budget for a business is considered
a. financial accounting
b. managerial accounting
Ans: b. managerial accounting
which of the following would NOT be an objective of external users
reading a company's financial statements
a. understanding the current financial statements of the company
b. assessing the company's contribution to social politics
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c. predicting the company's future financial performance
d. evaluating the company's ability to generate cash from the
business
Ans: b. assessing the company's contribution to social politics
what is the primary purpose of financial accounting?
a. communicate business activities to internal management
b. determine the amount of tax liabilities owed to various
government jurisdictions
c. measure the profitability of the company in order to assist
employees with making decisions
d. measure business activities and communicate those measures to
external users to make decisions
Ans: d. measure business activities and communicate those
measures to external users to make decisions
MGMT 200 Exam 1 Questions And Correct
Answers/ Latest Update / Already Graded
accounting is a system of maintaining records of a company's
operations and communicating that to decision makers.
true or false?
Ans: true
what makes accounting a valuable discipline?
a. it stores financial information in accounts
b. provides information to make decisions
c. records events and transactions
d. produces financial reports
Ans: b. provides information to make decisions
,2 | Page
financial accounting does not deal with which of the following?
a. measuring a company's economic activity
b. preparing financial reports
c. communicating financial results to investors
d. providing information to internal users
Ans: d. providing information to internal users
which of the following groups is NOT among the external users for
whom financial statements are prepared?
a. creditors
b. managers
c. regulators
d. investors
e. customers
Ans: b. managers
,3 | Page
product profitability reports for a business are considered
a. financial accounting
b. managerial accounting
Ans: b. managerial accounting
preparing a budget for a business is considered
a. financial accounting
b. managerial accounting
Ans: b. managerial accounting
which of the following would NOT be an objective of external users
reading a company's financial statements
a. understanding the current financial statements of the company
b. assessing the company's contribution to social politics
, 4 | Page
c. predicting the company's future financial performance
d. evaluating the company's ability to generate cash from the
business
Ans: b. assessing the company's contribution to social politics
what is the primary purpose of financial accounting?
a. communicate business activities to internal management
b. determine the amount of tax liabilities owed to various
government jurisdictions
c. measure the profitability of the company in order to assist
employees with making decisions
d. measure business activities and communicate those measures to
external users to make decisions
Ans: d. measure business activities and communicate those
measures to external users to make decisions
