MGMT 200 Exam 1 - Purdue University 100% Correct Verified 2024 Version
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Academic Avengers Verified Papers
MGMT 200 Exam 1 - Purdue University |
100% Correct | Verified | 2024 Version
Preparing a budget for a business is considered
A. financial accounting.
B. managerial accounting. - B. managerial accounting.
(Management accounting provides information to people within an organization while financi...
MGMT 200 Exam 1 - Purdue University |
100% Correct | Verified | 2024 Version
Preparing a budget for a business is considered
A. financial accounting.
B. managerial accounting. - ✔✔B. managerial accounting.
(Management accounting provides information to people within an organization while financial
accounting is mainly for those outside it, such as shareholders.)
Accounting is the information system that
A. measures business activities
B. communicates the results to decision
makers
C. processes information into reports
D. all of the above. - ✔✔D. all of the above.
Which of the following is not an external user of
a business's financial information?
A. Taxing authorities
B. Customers
C. Employees
D. Investors - ✔✔C. Employees
Which statement below best describes the accounting
equation?
A. The change in retained earnings equals net
income less dividends.
B. Equality of revenue and expense transactions
,over time.
C. Financing activities equal investing and
operating activities.
D. Resources of the company equal creditors' and
owners' claims to those resources. - ✔✔D. Resources of the company equal creditors' and
owners' claims to those resources.
(assets = liabilities + stockholders' equity)
Owners' claims to the company's resources are
referred to as:
A. Liabilities.
B. Assets.
C. Stockholders' equity.
D. Net liabilities. - ✔✔C. Stockholders' equity.
(assets = liabilities + stockholders' equity)
If total assets of a company equal $25,000 and
total stockholders' equity equals $10,000, then
total liabilities equal $15,000.
A. True
B. False - ✔✔A. True
(Assets = Liabilities + Equity
$25,000 = $15,000 + $10,000)
Amounts owed to suppliers for supplies
purchased on account are defined as a(n):
A. Revenue.
B. Asset.
C. Liability.
, D. Expense. - ✔✔C. Liability
(assets = liabilities + stockholders' equity)
If total liabilities of a company equal $29,000
and total stockholders' equity equals $15,000,
then total assets equal $14,000.
A. True
B. False - ✔✔B. False
(Assets = Liabilities + Equity
$44,000 = $29,000 + $15,000)
Financial accounting does not deal with which of the following?
A. Measuring a company's economic activity.
B. Providing information to internal users.
C. Preparing financial reports.
D. Communicating financial results to
investors. - ✔✔B. Providing information to internal users.
The accounting equation shows that a
company's resources equal creditors' and owners' claims to those resources.
A. True
B. False - ✔✔A. True
An alternative form of the accounting equation is:
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