MGMT 200 FINAL EXAM (PURDUE UNIVERSITY) NEWEST 2024 FINAL EXAM, PRACTICE EXAM AND STUDY GUIDE 400+ QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY|| BRAND NEW!!

MGMT 200 FINAL EXAM (PURDUE
UNIVERSITY) NEWEST 2024 FINAL
EXAM, PRACTICE EXAM AND STUDY
GUIDE 400+ QUESTIONS AND
CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY||
BRAND NEW!!
The par value of shares issued is normally recorded in the
a. Additional Paid‐in Capital account.
b. Retained Earnings account.
c. Common Stock account.
d. asset account Common Stock. - ANSWER-C
Meadows Racetrack, Inc. issues 1,000 shares of $1 par value common stock for $20
per share, what would be the effect on the accounting equation?
a. Increase assets and increase stockholders' equity
b. Increase assets and increase liabilities
c. Increase assets and increase revenue
d. Increase assets and decrease stockholders' equity - ANSWER-A
The issuer of a 3% common stock dividend to common stockholders should debit stock
dividends for an amount equal to the
a. Fair or market value of the shares issued.
b. Book value of the shares issued.
c. Par or stated value of the shares issued. d. Minimum legal requirements. - ANSWERA
On June 30, 2017, when Cotswolds, Inc.'s common stock was selling at $50 per share,
its capital accounts were as follows:
Common stock (par value $1; 50,000 shares issued)----------------------------------------
$50,000
Additional Paid‐in Capital----------$200,000
Retained earnings--------------- $4,000,000
If a 10% stock dividend was declared and distributed, Additional Paid‐in Capital would
be
a. $200,000
b. $445,000 ($200,000 + $245,000)
c. $205,000
d. $225,000 - ANSWER-B
Dr. Dividends (5,000 shares x $50/market value)---------------------------250,000
Cr. Common Stock (5,000 shares x $1 par value)------------------------------------------------
5,000
Cr. Additional Paid‐in Capital (difference)-------------------------------------------------------
245,000
At the date of the financial statements, common stock shares issued would exceed
common stock shares outstanding as a result of the
A. declaration of a stock split.
B. purchase of treasury stock.
C. declaration of a small stock dividend.
D. declaration of a large stock dividend. - ANSWER-B
Which of the following transactions affects total retained earnings?
A. Purchase of treasury stock
B. Payment of previously declared cash dividend
C. Declaration of a stock dividend
D. Declaration of a stock split - ANSWER-C
Which of the following events decreases a company's stockholders' equity?
A. A payment of a previously declared cash dividend
B. A declaration of a $.10 cash dividend per share on preferred stock
C. A 5‐for‐4 stock split
D. A declaration of a two percent stock dividend - ANSWER-B
Clifton Gardens, Inc. was organized on January 1, 2017. The firm was authorized to
issue 100,000 shares of $1 par value common stock. During 2017, Clifton Gardens had
the following transactions relating to shareholders' equity:
Issued 10,000 shares of common stock at $7 per share. Issued 5,000 shares of
common stock at $8 per share. Reported a net income of $200,000.
Paid dividends of $20,000.
What is the total amount recorded in the Common Stock account at the end of 2017?
a) $110,000
b) $ 15,000
c) $310,000
d) $290,000 - ANSWER-B
10,000 shares × $1/par value = $10,000
5,000 shares × $1/par value = 5,000
$15,000
The primary purpose of the statement of cash flows is to provide information
A. about a company's investing and financing activities during an accounting period.
B. regarding a company's financial position at the end of an accounting period.
C. about a company's cash receipts and cash payments during an accounting period.
D. regarding the results of operations for a period of time. - ANSWER-C
The income statement indicates a company's success or failure in deriving a profit from
its operations, it also reflects the inflow and outflow of cash from operating activities.
A. True
B. False - ANSWER-B
The total of the cash flows from operating, investing, and financing activities equals the
net increase or decrease in cash for the period.
A. True
B. False - ANSWER-A
An increase in inventories during the accounting period represents a increase in cash.
a) True
b) False - ANSWER-B
An increase in accrued wages during the accounting period represents a increase in
cash.
a) True
b) False - ANSWER-A
Which of the following represents an decrease in cash flows?
a) Increase in Accounts Payable
b) Decrease in Inventory
c) Decrease in Wages Payable
d) Increase in Deferred Revenue - ANSWER-C
Cotswolds Corporation repaid a 90‐day note payable to a bank. Indicate which section,
if any, this transaction would appear in, or relate to, on a statement of cash flows.
A. Operating activities section
B. Investing activities section
C. Financing activities section
D. Schedule of noncash investing and financing transactions - ANSWER-C
A reduction of inventory represents an increase in cash.
a) True
b) False - ANSWER-A
A decrease in wages payable during the accounting period represents a decrease in
cash.
a) True
b) False - ANSWER-A
Which of the following would not appear in the investing activities of the statement of
cash flows?
A. Sale of investments
B. Purchase of land
C. Purchase of inventory
D. All of the above would appear in the investing section of the statement of cash flows -
ANSWER-C -----> operating activity
Repayments of accounts payable or accrued liabilities are considered repayments of
loans under financing activities.
A. True
B. False - ANSWER-B
All classifications on the Balance Sheet have a general relationship with sections
identified on the Statement of Cash Flows. Indicate which relationships are correctly
identified in the table below
I
Deferred Revenue-Operating
II
Equipment-Operating
III
Common Stock-Investing
IV
Accounts Receivable-Financing
V
Accrued Wages-Operating
A. IV, V
B. I&V
C. I, III, IV, V.
D. All of these - ANSWER-B
Which of the following would be subtracted from net income to arrive at net cash flows
from operating activities?
A. Increase in Notes Payable
B. Decrease in Inventory
C. Decrease in Accounts Payable
D. Depreciation Expense - ANSWER-C
This item is extracted from an a