MGMT 200 EXAM 1 (PURDUE UNIVERSITY) NEWEST 2024 EXAM 1 AND PRACTICE EXAM 250 QUESTIONS AND CORRECT DETAILED ANSWERS|ALREADY GRADED A+ ||!!BRAND NEW

MGMT 200 EXAM 1 (PURDUE
UNIVERSITY) NEWEST 2024 EXAM
1 AND PRACTICE EXAM 250
QUESTIONS AND CORRECT
DETAILED ANSWERS|ALREADY
GRADED A+ ||!!BRAND NEW
Which of the following is not a possible journal entry?
A. Credit assets; Debit expenses.
B. Credit revenues; Debit assets.
C. Debit expenses; Credit liabilities
D. Debit assets; Debit stockholders' equity. - ANSWER-D. Debit assets; Debit
stockholders' equity.
Which of the following events does not require
a journal entry?
A. Performance of a service agreed to at a
past date.
B. Purchase of a two‐year insurance policy.
C. Contract to perform a service at a future
date.
D. Payment for a service performed
previously. - ANSWER-C. Contract to perform a service at a future
date.
In a journal entry, credits are always recorded
before debits
A. True
B. False - ANSWER-A. True
The following statements pertain to recording transactions.
Which of them are true?
I. Total debits should equal total credits.
II. Liabilities are listed second in journal entries.
III. It is possible to have multiple debits or credits
in one journal entry.
IV. Some journal entries will have debits only
A. I only.
B. I and III.
C. II and IV.
D. I and IV. - ANSWER-B. I and III.
Knight Co., Inc. performed cleaning services for its
customers on account. These transactions would be
recorded as:
A. Debit Service Revenue, credit Cash.
B. Debit Cash, credit Service Revenue.
C. Debit Cash, credit Accounts Receivable.
D. Debit Accounts Receivable, credit Service
Revenue. - ANSWER-D. Debit Accounts Receivable, credit Service
Revenue.
What is the process of identifying, measuring, and communication economic information
to various users? - ANSWER-Accounting
What makes accounting a valuable discipline? - ANSWER-Provides information to
make decisions
The branch of accounting concerned with providing management with information to
facilitate planning and control is? - ANSWER-Managerial accounting
The main objective of financial reporting is to provide information: - ANSWER-Decision
making
The area of accounting that emphasizes developing accounting information to use
within a company is: - ANSWER-Managerial accounting
A transaction is any event, external or internal, that is recognized in a set of financial
statements - ANSWER-True
Transactions must affect the financial position of the business to be recorded in a
financial accounting system. - ANSWER-True
Which of the following is a business event that is not considered a recordable
transaction?
A. A customer places an order for product
B. A company receives a product previously ordered
C. A company pays an employee for work performed
D. A customer purchases a service - ANSWER-A customer places an order for a
product
Which of the following business event is not a recordable transaction in accounting?
A. Paying wages
B. Receiving goods
C. Signing a contract
D. Purchasing a service - ANSWER-Signing a contract
Which is recorded first?
A. When a company signs the agreement
B. When a company receives delivery of the truck
C. When a company receives the bill from the seller
D. When a company pays 60000 to the seller - ANSWER-When a company receives
delivery of a truck
Assets can be best described as - ANSWER-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 -
ANSWER-Creditors (like suppliers, bank, employees)
What is not an asset?
*Assets benefit future operations. Examples are cash, inventory, supplies, accounts
receivable, buildings and equipment. - ANSWER-Common stock
What is the best definition of an accounts receivable? - ANSWER-Amounts owed by
customers to a company
A supplier that deliver goods and services before being paid is typically recorded in an
liability account called - ANSWER-Accounts payable
The amounts recorded when the company sells products or provides services to
customers are referred to as: - ANSWER-Revenues
The costs associated with producing revenues are referred to as: - ANSWER-Expenses
Dividends represent a return of the company's profit to stockholders - ANSWER-True
In a corporation, the authority to pay a dividend is determined by the - ANSWER-Board
of directors
The measurement/communication process of financial accounting is referred to as the -
ANSWER-Accounting cycle
Which of the following is NOT possible when recording a transaction?
A. One asset increases and another asset decreases
B. Stockholders' equity increases and assets increase
C. Stockholder's equity
D. Assets decrease and stockholders' equity increase - ANSWER-Assets decrease and
stockholders' equity increase
The effects of purchasing inventories on credit(or on account) are to: - ANSWERIncrease assets and increase liabilities
When a cash payment is made on wages payable: - ANSWER-Assets and liabilities
decrease
The effects of paying salaries for the current period are to: - ANSWER-Decrease assets
and decrease stockholders' equity
Which of the following transactions would cause an increase in liabilities and a decrease
in retained earnings?
A.Paying insurance premium for the next two years
B. Received a maintenance bill to be paid the following month
C. Paying advertising for the current month
D. Providing installation services to customers - ANSWER-Received a maintenance bill
to be paid the following month
The purchase of a $5000 liability insurance policy for the next year on account will:
A. Increase both expense and liabilities by $5000
B. Increase assets and decrease stockholders equity by $5000
C. Increase both assets and liabilities by $5000
D. Increase both assets and stockholders' equity - ANSWER-Increase both assets and
liabilities by $5000
Assume that a company performed landscaping services of 1250 on account for an
office complex. How would this transaction affect the company? - ANSWER-Increase
equity and increase assets by 1250
Which of the following is true? - ANSWER-The credit is on the right side of an asset
account
What is false? - ANSWER-The right side of a T-account is called the debit side
For a T account, an account balance is the difference in total dollars between total debt
footings and total credit footings - ANSWER-True
Debits will: - ANSWER-Increase assets, expenses, and dividends
What is true?
i. Debits represent decreases and credits represent increases
ii. Credits must always equal debits
iii. Liabilities and stockholders' equity have normal credit balances while assets have
normal debit balances - ANSWER-II and III
Which of the following is correct? - ANSWER-Inventories are decrease with a credit
Consider the list of accounts
Revenues Prepaid rent
Equipment Utilities expense
Salaries liabilities Cash
Accounts payable Common stock
Rent payable Dividends - ANSWER-Five:
Equipment, Prepaid rent, utilities expense, cash, divi