MBA700: Exam 1 Questions and Answers 100% Pass

MBA700: Exam 1 Questions and Answers
100% Pass


I, SES, B -

CORRECT ANSWER: Four financial statements are usually prepared

for a business. The statement of cash flows is usually prepared last. The

stockholders equity statement (SES), the balance sheet (B), and the

income statement (I) are prepared in a certain order to obtain

information needed for the next statement. In what order are these three

statements prepared?




QUESTION: A=L+OE -

CORRECT ANSWER: The accounting equation can be stated as:




QUESTION: Debiting an expense -

,CORRECT ANSWER: Incurring an expense for advertising on account

would be recorded by:




QUESTION: Debit to investments -

CORRECT ANSWER: Mary Parker Co. invested $15,000 in ABC

Corporation and received common stock in exchange. Mary Parker Co.'s

journal entry to record this transaction would include a:




QUESTION: Advertising expense. -

CORRECT ANSWER: What account has a balance whereby debits

normally exceed credits?




QUESTION: An asset. -

CORRECT ANSWER: An economic resource of an entity is:




QUESTION: Plus net income (revenue - expenses), minus dividends. -

, CORRECT ANSWER: The balance in retained earnings at the end of

the year is determined by retained earnings at the beginning of the year:




QUESTION: balance sheet -

CORRECT ANSWER: Liabilities are reported on the




QUESTION: Financial Accounting Standards Board (FASB) -

CORRECT ANSWER: Within the United States, the dominant body in

the primary development of accounting principles is the




QUESTION: Ledger -

CORRECT ANSWER: An accounting record in which lists all the

increases and decreases in each account in one place is called the




QUESTION: False -

CORRECT ANSWER: True/False: the FASB relies on the SEC to

develop accounting standards.