MBA 700 Module 1 Questions With Correct Solutions
Accounting Correct Answer - set of concepts and techniques that are
used to measure and report financial information about an economic unit
Financial Accounting Correct Answer - external report of information to
parties outside the firm
Managerial Accounting Correct Answer - providing information for
internal management
Fundamental Accounting Equation Correct Answer - Assets = Liabilities
+ Owner's Equity
Assets Correct Answer - economic resources of the entity, and include
items like cash, accounts receivable (amounts owed to a firm by its
customers), inventories, land, buildings, equipment, and even intangible
assets (patents, legal rights, claims)
Liabilities Correct Answer - amounts owed to others relating to loans,
extensions of credit and other obligations arising
Owners' Equity Correct Answer - the owner's "interest" in the business
[net assets]. Common Stock + Retained Earnings
Sole Proprietorship Correct Answer - A business owned by one person,
and its equity would typically consist of a single owner's capital account
partnership Correct Answer - business owned by more than one person,
with its equity consisting of a separate account for each partner
corporation Correct Answer - ownership interest being represented by
divisible units of ownership called shares of stock
Revenue Correct Answer - the "top line" amount corresponding to the
total benefits generated from business activity; turnover, inflows and
enhancements from delivery of goods and services
, Income Correct Answer - the "bottom line" amount that results after
deducting the expenses from review
balance sheet Correct Answer - reveals the assets, liabilities, and equity
of a company; prepared as of a specific date
income statement Correct Answer - summary of an entity's results of
operation for a specified period of time
statement of retained earnings Correct Answer - reduced by dividends
paid to shareholders; covers a period of time
statement of cash flow Correct Answer - reveals how cash is generated
and expended during a specific period of time; consisting of operating,
investing, and financing activities
Accounts Correct Answer - records kept for the individual asset, liability,
equity, revenue, expense, and dividend components
What form can every transaction be described in? Correct Answer -
debits and credits
D.E.A.D. Correct Answer - Debits increase Expenses, Assets, and
Dividends
Liabilities, Revenues, Expenses Correct Answer - debits decrease, credits
increase
General Journal Correct Answer - log book containing a chronological
listing of a company's transactions and events; "book of original entry"
General Ledger Correct Answer - another notebook that contains a page
for each and every account in use by a company
Posting Correct Answer - copy "post" the entries listed in their
respective ledger accounts
trial balance Correct Answer - listing of the ledger accounts along with
their respective debit or credit balances; not a formal financial statement
Accounting Correct Answer - set of concepts and techniques that are
used to measure and report financial information about an economic unit
Financial Accounting Correct Answer - external report of information to
parties outside the firm
Managerial Accounting Correct Answer - providing information for
internal management
Fundamental Accounting Equation Correct Answer - Assets = Liabilities
+ Owner's Equity
Assets Correct Answer - economic resources of the entity, and include
items like cash, accounts receivable (amounts owed to a firm by its
customers), inventories, land, buildings, equipment, and even intangible
assets (patents, legal rights, claims)
Liabilities Correct Answer - amounts owed to others relating to loans,
extensions of credit and other obligations arising
Owners' Equity Correct Answer - the owner's "interest" in the business
[net assets]. Common Stock + Retained Earnings
Sole Proprietorship Correct Answer - A business owned by one person,
and its equity would typically consist of a single owner's capital account
partnership Correct Answer - business owned by more than one person,
with its equity consisting of a separate account for each partner
corporation Correct Answer - ownership interest being represented by
divisible units of ownership called shares of stock
Revenue Correct Answer - the "top line" amount corresponding to the
total benefits generated from business activity; turnover, inflows and
enhancements from delivery of goods and services
, Income Correct Answer - the "bottom line" amount that results after
deducting the expenses from review
balance sheet Correct Answer - reveals the assets, liabilities, and equity
of a company; prepared as of a specific date
income statement Correct Answer - summary of an entity's results of
operation for a specified period of time
statement of retained earnings Correct Answer - reduced by dividends
paid to shareholders; covers a period of time
statement of cash flow Correct Answer - reveals how cash is generated
and expended during a specific period of time; consisting of operating,
investing, and financing activities
Accounts Correct Answer - records kept for the individual asset, liability,
equity, revenue, expense, and dividend components
What form can every transaction be described in? Correct Answer -
debits and credits
D.E.A.D. Correct Answer - Debits increase Expenses, Assets, and
Dividends
Liabilities, Revenues, Expenses Correct Answer - debits decrease, credits
increase
General Journal Correct Answer - log book containing a chronological
listing of a company's transactions and events; "book of original entry"
General Ledger Correct Answer - another notebook that contains a page
for each and every account in use by a company
Posting Correct Answer - copy "post" the entries listed in their
respective ledger accounts
trial balance Correct Answer - listing of the ledger accounts along with
their respective debit or credit balances; not a formal financial statement
