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MGMT 200 EXAM 1 (PURDUE UNIVERSITY) NEWEST 2025/2026 EXAM
1 AND PRACTICE EXAM 250 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
The costs of providing goods and services to customers are referred to as:
A. Assets
B. Expenses
C. Liabilities
D. Revenues - ANSWER-B
Using the information below from the accounting records of Knomark
Corporation, stockholders' claims to the company's resources amount to:
Assets $1,200,000
Liabilities $800,000
Net income $100,000
Retained earnings $250,000
A. $1,200,000
B. $800,000.
C. $250,000
D. $400,000 - ANSWER-1,200,000 = 800k + 400k
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Which of the following best describes revenue?
A. Resources of a company.
B. Sales of goods and services to a customer.
C. Cash received from a customer.
D. Dividends paid to stockholders. - ANSWER-B
The difference between revenues and expenses is referred to as net income
or net loss.
A. True
B. False - ANSWER-A
Use the following amounts to calculate net income: Revenues, $12,000;
Liabilities, $5,000; Expenses, $4,000; Assets, $19,000; Dividends, $4,000
A. $6,000.
B. $8,000.
C. $4,000.
D. $14,000. - ANSWER-B
Revenues $12,000 Expenses (4,000) Net income $8,000
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Dividends represent a return of the company's profits to its owners, the
stockholders.
A. True
B. False - ANSWER-A
The resources of a company are referred to as:
A. Liabilities
B. Revenues
C. Assets
D. Expenses - ANSWER-C
Liabilities can be best described as:
A. The amount of expenses over the past year.
B. The amount expected to be distributed to stockholders.
C. The amount owed to creditors
D. The amount of services provided to customers during the year. -
ANSWER-C
Storage account used is accounts payable
Dividends represent a return of the company's profits to its owners, the
stockholders.
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A. True
B. False - ANSWER-A
Not classified as an "expense"
Most business enterprises in the United States are
A. government units.
B. partnerships
C. sole proprietorship.
D. corporations. - ANSWER-C
Transfer of ownership will not affect the continuity of a
A. corporation or partnership
B. corporation
C. partnership
D. sole proprietorship - ANSWER-B
Which business form has the advantage of limited liability?
A. Corporation
B. Sole proprietorship
C. Partnership
MGMT 200 EXAM 1 (PURDUE UNIVERSITY) NEWEST 2025/2026 EXAM
1 AND PRACTICE EXAM 250 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
The costs of providing goods and services to customers are referred to as:
A. Assets
B. Expenses
C. Liabilities
D. Revenues - ANSWER-B
Using the information below from the accounting records of Knomark
Corporation, stockholders' claims to the company's resources amount to:
Assets $1,200,000
Liabilities $800,000
Net income $100,000
Retained earnings $250,000
A. $1,200,000
B. $800,000.
C. $250,000
D. $400,000 - ANSWER-1,200,000 = 800k + 400k
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Which of the following best describes revenue?
A. Resources of a company.
B. Sales of goods and services to a customer.
C. Cash received from a customer.
D. Dividends paid to stockholders. - ANSWER-B
The difference between revenues and expenses is referred to as net income
or net loss.
A. True
B. False - ANSWER-A
Use the following amounts to calculate net income: Revenues, $12,000;
Liabilities, $5,000; Expenses, $4,000; Assets, $19,000; Dividends, $4,000
A. $6,000.
B. $8,000.
C. $4,000.
D. $14,000. - ANSWER-B
Revenues $12,000 Expenses (4,000) Net income $8,000
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Dividends represent a return of the company's profits to its owners, the
stockholders.
A. True
B. False - ANSWER-A
The resources of a company are referred to as:
A. Liabilities
B. Revenues
C. Assets
D. Expenses - ANSWER-C
Liabilities can be best described as:
A. The amount of expenses over the past year.
B. The amount expected to be distributed to stockholders.
C. The amount owed to creditors
D. The amount of services provided to customers during the year. -
ANSWER-C
Storage account used is accounts payable
Dividends represent a return of the company's profits to its owners, the
stockholders.
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A. True
B. False - ANSWER-A
Not classified as an "expense"
Most business enterprises in the United States are
A. government units.
B. partnerships
C. sole proprietorship.
D. corporations. - ANSWER-C
Transfer of ownership will not affect the continuity of a
A. corporation or partnership
B. corporation
C. partnership
D. sole proprietorship - ANSWER-B
Which business form has the advantage of limited liability?
A. Corporation
B. Sole proprietorship
C. Partnership
