MGMT 200 - Exam 1 - Purdue University UPDATED Actual Questions and CORRECT Answers
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Course
MGMT 200
Institution
MGMT 200
MGMT 200 - Exam 1 - Purdue University
UPDATED Actual Questions and
CORRECT Answers
What is the process of identifying, measuring,
and communicating economic information to
various users?
A. Accounting
B. Management
C. Business
D. Analysis - CORRECT ANSWER- A. Accounting
MGMT 200 - Exam 1 - Purdue University
UPDATED Actual Questions and
CORRECT Answers
What is the process of identifying, measuring,
and communicating economic information to
various users?
A. Accounting
B. Management
C. Business
D. Analysis - CORRECT ANSWER✔✔- A. Accounting
What makes accounting a valuable discipline?
A. Produces financial reports
B. It stores financial information in accounts
C. Provides information to make decisions
D. Records events and transactions - CORRECT ANSWER✔✔- C. Provides information to
make decisions
The branch of accounting concerned with providing
management with information to facilitate planning
and control.
A. financial accounting
B. tax accounting
C. managerial accounting
D. control accounting - CORRECT ANSWER✔✔- C. managerial accounting
The main objective of financial reporting is to provide
information
,A. on a company's assets, liabilities, and
stockholders' equity.
B. for decision making.
C. about a company's financial performance during
a period.
D. provide stockholders information to assess an
entity's performance. - CORRECT ANSWER✔✔- B. for decision making.
The area of accounting that emphasizes developing
accounting information for use within a company is
A. financial accounting.
B. managerial accounting.
C. manufacturing accounting.
D. operations accounting - CORRECT ANSWER✔✔- B. managerial accounting.
A transaction is any event, external or internal, that is
recognized in a set of financial statements.
A. True
B. False - CORRECT ANSWER✔✔- a. True
Transactions must affect the financial position of
the business to be recorded in a financial
accounting system.
A. true
B. false - CORRECT ANSWER✔✔- A. true
For example, the receipt of a sales order from
a customer is not recorded until the product
or service is provided to the customer.
Which of the following is a business event that is not
,considered a recordable transaction?
A. A company receives a product previously
ordered.
B. A company pays an employee for work
performed
C. A customer purchases a service.
D. A customer places an order for product. - CORRECT ANSWER✔✔- D. A customer
places an order for product.
Which of the following business events is not a
recordable transaction in accounting?
A. Paying wages
B. Receiving goods
C. Signing a contract
D. Purchasing a service - CORRECT ANSWER✔✔- C. Signing a contract
Although signing a contract could be an important
business event it is not recorded in an accounting
system.
San Pedro Corporation recently purchased a truck for
$60,000, which will be paid within 45 days after
delivery. At what point would the event be recorded in
San Pedro's accounting system?
A. When San Pedro signs the agreement with the
seller.
B. When San Pedro receives delivery of the truck.
C. When San Pedro receives the invoice (a bill)
from the seller.
D. When San Pedro pays the $60,000 to the seller.
delivered - CORRECT ANSWER✔✔- B. When San Pedro receives delivery of the truck.
, Agreement Signed - Truck Delivered - Invoice Received - Cash Payment
Assets can be best described as
A. resources owned by the company having future
benefit to the company.
B. collection of resources belonging to the
company and the claims on these resources.
C. cash owned by the company.
D. owners' investment in the business - CORRECT ANSWER✔✔- A. resources owned by
the company having future
benefit to the company.
Those who lend money or deliver goods and services
before being paid are called
A. creditors.
B. investors.
C. debtors.
D. stockholders - CORRECT ANSWER✔✔- A. creditors. (suppliers, bank, employees)
Which of the following accounts is not an asset?
A. Inventory
B. Cash
C. Common stock
D. Equipment - CORRECT ANSWER✔✔- C. Common stock
Assets benefit future operations.
Examples are cash, inventory,
supplies, accounts receivable,
buildings and equipment.
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