MGMT 200 Exam(Purdue University) COMPLETE COMPILATION

Preparing a budget for a business is considered A. financial accounting. B. managerial accounting B 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 ...

Accounting is a system of maintaining records of a company's operations and communication that information to decision makers. Correct Answer: True What makes accounting a valuable discipline? Correct Answer: Provides information to make decisions Financial accounting does not deal with whi...

Credit sales are recorded as A. Debit Cash, credit Deferred Revenue B. Debit Service Revenue, credit Accounts Receivable C. Debit Cash, credit Service Revenue D. Debit Accounts Receivable, credit Service Revenue Correct Answer: D Identify the condition(s) that must exist for a sale and the r...

At the time of a credit sale, a company would record an increase in assets and an increase in revenues. True or false? Correct Answer: True Credit sales transfer products and services to a customer today while bearing the risk of collecting payment from that customer in the future. True or fa...

Woodcrest, Inc. borrowed $50,000 from a local bank and signed a promissory note. What entry should Woodcrest record? A. Debit Cash, $50,000; Credit Notes Receivable, $50,000. B. Debit Notes Receivable, $50,000; Credit Cash, $50,000. C. Debit Cash, $50,000; Credit Notes Payable, $50,000. D. ...

Woodcrest, Inc. borrowed $50,000 from a local bank and signed a promissory note. What entry should Woodcrest record? a) debit Cash, $50,000; credit Notes Receivable, $50,000 b) debit Notes Receivable, $50,000; credit Cash, $50,000 c) debit Cash, $50,000; credit Notes Payable, $50,000 d) debit N...

One can obtain a clear picture of a company's liquidity by referring to its A. Balance Sheet. B. Income Statement Correct Answer: A. Balance Sheet (liquidity refers to assets / cash, while income statement only deals with revenues, expenses, and profits) The advantages of obtaining funds ...

Credit sales are recorded as: Correct Answer: Debit Accounts Receivable, credit Service Revenue Identify the likely disadvantage(s) of extending credit to customers: Correct Answer: Delay or failure to collect cash Identify the condition(s) that must exist for a sale and the related recei...