MGMT 200 EXAM 1 questions with answers

MGMT 200 EXAM 1 questions with
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answers


accounting - CORRECT ANSWERS ✔✔a system of
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maintaining records of a company's operations and
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communicating that information to decision makers |\ |\ |\ |\ |\




financial accounting - CORRECT ANSWERS
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✔✔measurement of business activities of a company and |\ |\ |\ |\ |\ |\ |\ |\



communication of those measurements to external |\ |\ |\ |\ |\ |\



parties for decision-making
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investors - CORRECT ANSWERS ✔✔make decisions related
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to buying and selling the company's stock
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creditors - CORRECT ANSWERS ✔✔make decisions related
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to lending money to the company
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corporation - CORRECT ANSWERS ✔✔an entity that is
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legally separate from its owners
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,limited liability - CORRECT ANSWERS ✔✔prevents
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stockholders from being held personally responsible for |\ |\ |\ |\ |\ |\ |\



the financial obligations of the corporation
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sole proprietorship - CORRECT ANSWERS ✔✔a business
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owned by one person |\ |\ |\




partnership - CORRECT ANSWERS ✔✔business owned by |\ |\ |\ |\ |\ |\ |\



two or more persons
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double taxation - CORRECT ANSWERS ✔✔a corporation's
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income is taxed twice; first when the company earns it
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and pays corporate income taxes on it, and then again
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when stockholders pay personal income taxes on
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amounts the firm distributes to them as dividends
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assets - CORRECT ANSWERS ✔✔resources of a company
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liabilities - CORRECT ANSWERS ✔✔amounts owed to
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creditors


stockholders' equity - CORRECT ANSWERS |\ |\ |\ |\ |\



✔✔stockholders', or owners', claims to resources, which |\ |\ |\ |\ |\ |\ |\



equal the difference between assets and total liabilites
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, accounting equation - CORRECT ANSWERS ✔✔equation |\ |\ |\ |\ |\ |\



that shows a company's resources (assets) equal
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creditors' and owners' claims to those resources
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(liabilities and stockholders' equity) |\ |\ |\




revenues - CORRECT ANSWERS ✔✔amounts earned from
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selling products or services to customers
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expenses - CORRECT ANSWERS ✔✔costs of providing
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products and services |\ |\




net income; netloss/ earnings/ profit - CORRECT ANSWERS
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✔✔difference between all revenues and all expenses for
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the period
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dividends - CORRECT ANSWERS ✔✔distributions by a
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corporation to its stockholders |\ |\ |\




financial statements - CORRECT ANSWERS ✔✔periodic
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reports published by the company for the purpose of
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providing information to external users
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four primary financial statements - CORRECT ANSWERS
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✔✔income statement, statement of stockholders' equity,
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balance sheet, statement of cash flows
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