MBA 620 MIDTERM EXAM QUESTIONS
Sales of goods or services to customers - Answers -Revenues
Revenues are recorded at sale, whether or not cash is received - Answers -Revenue
Recognition Principle
The cost of doing business, including labor, materials, advertising, and utilities -
Answers -Expenses
Expenses are recorded when the products are sold - Answers -Matching Principle
Resources Owned by the company - Answers -Assets
Resources Owed to creditors - Answers -Liabilities
Resources Left for Owners - Answers -Stockholders Equity
What happens when the company borrows $1,000?
Assets (cash) ______ by $1,000
Liabilities (loan) _______ by $1,000 - Answers -increase, increase
What happens when the company borrows $1,000?
Assets (cash) ______ by $1,000
Liabilities (loan) _______ by $1,000
What is this called? - Answers -Double entry accounting
Two important functions of managers - Answers -Plan, Control
Establishing and communicating goals
- Budgets
- Balanced Scorecards
- Performance incentives - Answers -Planning Function
Evaluating achievement of goals
- Variance analysis
- Balanced Scorecards
- Trend analysis - Answers -Control Function
Ethical Issues in Accounting (5) - Answers -conflict of interest, pressure to manipulate,
sins of omission, confidentiality, whistleblowing
Sales of goods or services to customers - Answers -Revenues
Revenues are recorded at sale, whether or not cash is received - Answers -Revenue
Recognition Principle
The cost of doing business, including labor, materials, advertising, and utilities -
Answers -Expenses
Expenses are recorded when the products are sold - Answers -Matching Principle
Resources Owned by the company - Answers -Assets
Resources Owed to creditors - Answers -Liabilities
Resources Left for Owners - Answers -Stockholders Equity
What happens when the company borrows $1,000?
Assets (cash) ______ by $1,000
Liabilities (loan) _______ by $1,000 - Answers -increase, increase
What happens when the company borrows $1,000?
Assets (cash) ______ by $1,000
Liabilities (loan) _______ by $1,000
What is this called? - Answers -Double entry accounting
Two important functions of managers - Answers -Plan, Control
Establishing and communicating goals
- Budgets
- Balanced Scorecards
- Performance incentives - Answers -Planning Function
Evaluating achievement of goals
- Variance analysis
- Balanced Scorecards
- Trend analysis - Answers -Control Function
Ethical Issues in Accounting (5) - Answers -conflict of interest, pressure to manipulate,
sins of omission, confidentiality, whistleblowing
