MBA 620 FINAL PAPER 2026 EXAMINATION
QUESTIONS AND ANSWERS GRADED A+
◉The book value of all of a corporation's net profits, minus all of its
dividend payments, is reported on the ________ line of the balance
sheet. Answer: accumulated retained earnings
◉If total assets increase: Answer: the change must be offset by an
equal increase in liabilities and stockholders' equity.
◉Which one of the following is a current liability? Answer: A note
payable to a lender in nine months
◉Regarding liquidity, which one of the following statements is
accurate? Answer: Balance sheet accounts are listed in order of
decreasing liquidity.
◉Liquidity is: Answer: valuable to a firm even though liquid assets
tend to be less profitable to own
◉________ is a component of total stockholders' equity. Answer:
Accumulated Retained Earnings
, ◉If a firm's financial managers successfully meet their primary goal,
then the firm's: Answer: market value will exceed its book value.
◉A(n) ________ asset is one that can be readily converted into cash
without a significant loss in its value. Answer: liquid
◉If a firm's treasury stock balance increases, the: Answer: firm
repurchased outstanding shares of stock.
◉The book value of a firm's assets: Answer: is determined under
Generally Accepted Accounting Principles (GAAP) and is based on
the cost of those assets.
◉The income statement:
a. measures the performance of the firm for one specific day.
b. ignores any income other than operating revenues.
c. excludes deferred tax expense.
d. treats dividends paid as a cash expense.
e. includes noncash expenses. Answer: E. Includes non-cash
expenses
◉Generally Accepted Accounting Principles (GAAP) require revenue
to be recognized as income when: Answer: the transaction is
complete and the goods or services are delivered.
QUESTIONS AND ANSWERS GRADED A+
◉The book value of all of a corporation's net profits, minus all of its
dividend payments, is reported on the ________ line of the balance
sheet. Answer: accumulated retained earnings
◉If total assets increase: Answer: the change must be offset by an
equal increase in liabilities and stockholders' equity.
◉Which one of the following is a current liability? Answer: A note
payable to a lender in nine months
◉Regarding liquidity, which one of the following statements is
accurate? Answer: Balance sheet accounts are listed in order of
decreasing liquidity.
◉Liquidity is: Answer: valuable to a firm even though liquid assets
tend to be less profitable to own
◉________ is a component of total stockholders' equity. Answer:
Accumulated Retained Earnings
, ◉If a firm's financial managers successfully meet their primary goal,
then the firm's: Answer: market value will exceed its book value.
◉A(n) ________ asset is one that can be readily converted into cash
without a significant loss in its value. Answer: liquid
◉If a firm's treasury stock balance increases, the: Answer: firm
repurchased outstanding shares of stock.
◉The book value of a firm's assets: Answer: is determined under
Generally Accepted Accounting Principles (GAAP) and is based on
the cost of those assets.
◉The income statement:
a. measures the performance of the firm for one specific day.
b. ignores any income other than operating revenues.
c. excludes deferred tax expense.
d. treats dividends paid as a cash expense.
e. includes noncash expenses. Answer: E. Includes non-cash
expenses
◉Generally Accepted Accounting Principles (GAAP) require revenue
to be recognized as income when: Answer: the transaction is
complete and the goods or services are delivered.
