Purdue University

Initiation Process Correct Answer: Obtain authorization to start a new project or phase on an existing project Planning Process Correct Answer: Establish the scope of the project, refine the objectives and define the course of action required Executing Process Correct Answer: Complete the work defined in the project management plan to satisfy the project specifications Monitoring and Controlling Process Correct Answer: Track, review, and regulate the progress and performance of the ...

The project manager and team should consider each process along with its inputs, tools and outputs. As a result, they should choose which are applicable. This effort is known as - Tailoring In Initiating, a project charter is created. According to the PMBOK, which person or group may help write the charter? - Project management team The Monitoring and Controlling Process Group involves: - Tracking, reviewing, and orchestrating the progress of the project Much information is collected and distrib...

Credit sales are recorded as: Correct Answer: Debit Accounts Receivable, credit Service Revenue Identify the likely disadvantage(s) of extending credit to customers: Correct Answer: Delay or failure to collect cash Identify the condition(s) that must exist for a sale and the related receivable to be recognized: Correct Answer: Collection of cash is probable & Goods or services have been provided to the customer The Sales Returns account is an expense account: Correct Answer: Fals...

One can obtain a clear picture of a company's liquidity by referring to its A. Balance Sheet. B. Income Statement Correct Answer: A. Balance Sheet (liquidity refers to assets / cash, while income statement only deals with revenues, expenses, and profits) The advantages of obtaining funds by issuing debt, rather than issuing additional common stock, include which of the following? A. Funds are obtained without surrendering ownership control. B. Funds are obtained without surrender...

Woodcrest, Inc. borrowed $50,000 from a local bank and signed a promissory note. What entry should Woodcrest record? a) debit Cash, $50,000; credit Notes Receivable, $50,000 b) debit Notes Receivable, $50,000; credit Cash, $50,000 c) debit Cash, $50,000; credit Notes Payable, $50,000 d) debit Notes Payable, $50,000; credit Cash, $50,000 Correct Answer: debit Cash, $50,000; credit Notes Payable, $50,000 We record interest expense in the period in which we pay it, rather than in the perio...

Woodcrest, Inc. borrowed $50,000 from a local bank and signed a promissory note. What entry should Woodcrest record? A. Debit Cash, $50,000; Credit Notes Receivable, $50,000. B. Debit Notes Receivable, $50,000; Credit Cash, $50,000. C. Debit Cash, $50,000; Credit Notes Payable, $50,000. D. Debit Notes Payable, $50,000; Credit Cash, $50,000. Correct Answer: C True or False: We record interest expense in the period in which we pay it, rather than in the period we incur it Correct Ans...

At the time of a credit sale, a company would record an increase in assets and an increase in revenues. True or false? Correct Answer: True Credit sales transfer products and services to a customer today while bearing the risk of collecting payment from that customer in the future. True or false? Correct Answer: True (Risk of collection) The ending balance of the Accounts Receivable account was $20,000. Services billed to customers for the period were $50,000, and collections on accou...

Credit sales are recorded as A. Debit Cash, credit Deferred Revenue B. Debit Service Revenue, credit Accounts Receivable C. Debit Cash, credit Service Revenue D. Debit Accounts Receivable, credit Service Revenue Correct Answer: D Identify the condition(s) that must exist for a sale and the related receivable to be recognized. A. Collection of cash is probable B. The company must have collected cash from at least one previous sale to the customer C. Goods or services have been provided...

Accounting is a system of maintaining records of a company's operations and communication that information to decision makers. Correct Answer: True What makes accounting a valuable discipline? Correct Answer: Provides information to make decisions Financial accounting does not deal with which of the following? Correct Answer: Providing information to internal users Which of the following groups is not among the external users for whom financial statements are prepared? Correct Answe...

Preparing 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 describe...