MBA 601 EXAM 1 (Latest Versions 2025)| Featuring Topics such
as Managerial Economics, Organizational Behavior, Marketing
Principles, Financial Analysis, and Strategic Decision-Making
Most Recent Exam 2025/2026 Actual Complete Real Exam
Questions And Correct Answers (Verified Answers) Already
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On December 31, Year 1 Adam Company incurred $3,000 of
accrued salary expense. The Year 2 recognition of the cash
payment for these expenses - ANSWER-decreases the amount
of liabilities shown on the Year 2 balance sheet.
A cost may be recorded as an expense or as an asset
purchase. This statement is
(True/False) - ANSWER-True
When a company purchases supplies on account -
ANSWER-liabilities
increase.
Howard Company purchased $300 of supplies on account.
Which of the
following shows how this purchase will affect Howard's ledger
accounts? - ANSWER-Supplies = 300
,AP = 300
Which of the following shows how paying cash to purchase
supplies will affect a
company's financial statements? - ANSWER-NA
across the board
Cash Flow = -
OA
Knoll Company started Year 2 with a $500 balance in its Cash
account, a $500
balance in its Supplies account and a $1,000 balance in its
common stock
account. During Year 2 the company experienced the
following events.
(1) Paid $400 cash to purchase
supplies
(2) Physical count revealed $100 of supplies on hand at the
end of Year 2
Based on this information the amount of supplies expense
reported on the Year
2 income statement is -
ANSWER-$800.
$500 of supplies and then purchased an additional $400 of
supplies during the
,accounting period, there was a total
amount of $900
Since there were only $100 of supplies on hand at the end of
the accounting
period then $800 ($900 - $100) had to
be used.
Delta Company started Year 2 with a $1,700 balance in its Cash
account, a $700 balance in its Supplies account and a $2,400
balance in its Common Stock account. During Year 2 the
company experienced the following events.
(1) Paid $1,600 cash to purchase
supplies.
(2) Physical count revealed $400 of supplies on hand at the
end of Year 2.
Based on this information, which of the following show how the
year end adjusting entry required to recognize supplies
expense would affect Delta's
account balances? - ANSWER-Supplies = (1,900)
RE = (1,900)
The amount of supplies available for use is $2,300 ($700
beginning balance in the Supplies account plus the $1,600
amount of supplies purchased). Given that there was $400 of
supplies on hand at the end of the accounting period, $1,900
($2,300 available - $400 ending balance) of supplies must have
, been used during the period. The amount of supplies used
would be recorded as an expense. The expense recognition
would cause assets (supplies) to decrease by $1,900, supplies
expense to increase by $1,900 and equity (retained earnings) to
decrease by $1,900.
Which of the following shows how adjusting the accounts to
recognize supplies expense will affect a company's financial
statements? - ANSWER-A - Equity -
Exp +
NI -
Cash Flow NA
Bookmyer Company experienced a business event that
affected its financial
statements as indicated
below.
Balance Sheet Income Statement Statement
ofCash Flows
Assets=Liab.+EquityRev.−Exp.=Net
Inc.
NA NA NANA NA NA− OA
Which of the following events could have caused these
effects? - ANSWER-
Paid cash to purchase
supplies
as Managerial Economics, Organizational Behavior, Marketing
Principles, Financial Analysis, and Strategic Decision-Making
Most Recent Exam 2025/2026 Actual Complete Real Exam
Questions And Correct Answers (Verified Answers) Already
Graded A+ | Accurate Answers | Already Graded A+ |
Guaranteed Success!! | Newest Exam | Just Released!!
On December 31, Year 1 Adam Company incurred $3,000 of
accrued salary expense. The Year 2 recognition of the cash
payment for these expenses - ANSWER-decreases the amount
of liabilities shown on the Year 2 balance sheet.
A cost may be recorded as an expense or as an asset
purchase. This statement is
(True/False) - ANSWER-True
When a company purchases supplies on account -
ANSWER-liabilities
increase.
Howard Company purchased $300 of supplies on account.
Which of the
following shows how this purchase will affect Howard's ledger
accounts? - ANSWER-Supplies = 300
,AP = 300
Which of the following shows how paying cash to purchase
supplies will affect a
company's financial statements? - ANSWER-NA
across the board
Cash Flow = -
OA
Knoll Company started Year 2 with a $500 balance in its Cash
account, a $500
balance in its Supplies account and a $1,000 balance in its
common stock
account. During Year 2 the company experienced the
following events.
(1) Paid $400 cash to purchase
supplies
(2) Physical count revealed $100 of supplies on hand at the
end of Year 2
Based on this information the amount of supplies expense
reported on the Year
2 income statement is -
ANSWER-$800.
$500 of supplies and then purchased an additional $400 of
supplies during the
,accounting period, there was a total
amount of $900
Since there were only $100 of supplies on hand at the end of
the accounting
period then $800 ($900 - $100) had to
be used.
Delta Company started Year 2 with a $1,700 balance in its Cash
account, a $700 balance in its Supplies account and a $2,400
balance in its Common Stock account. During Year 2 the
company experienced the following events.
(1) Paid $1,600 cash to purchase
supplies.
(2) Physical count revealed $400 of supplies on hand at the
end of Year 2.
Based on this information, which of the following show how the
year end adjusting entry required to recognize supplies
expense would affect Delta's
account balances? - ANSWER-Supplies = (1,900)
RE = (1,900)
The amount of supplies available for use is $2,300 ($700
beginning balance in the Supplies account plus the $1,600
amount of supplies purchased). Given that there was $400 of
supplies on hand at the end of the accounting period, $1,900
($2,300 available - $400 ending balance) of supplies must have
, been used during the period. The amount of supplies used
would be recorded as an expense. The expense recognition
would cause assets (supplies) to decrease by $1,900, supplies
expense to increase by $1,900 and equity (retained earnings) to
decrease by $1,900.
Which of the following shows how adjusting the accounts to
recognize supplies expense will affect a company's financial
statements? - ANSWER-A - Equity -
Exp +
NI -
Cash Flow NA
Bookmyer Company experienced a business event that
affected its financial
statements as indicated
below.
Balance Sheet Income Statement Statement
ofCash Flows
Assets=Liab.+EquityRev.−Exp.=Net
Inc.
NA NA NANA NA NA− OA
Which of the following events could have caused these
effects? - ANSWER-
Paid cash to purchase
supplies
