MGMT 300 Accounting questions n
answers 2025/2026
information - ANS ✔✔evidence that can potentially affect an individuals decisions
Adverse Selection - ANS ✔✔one party to a transaction takes advantage of knowing more than
the other party to the transaction
signaling - ANS ✔✔an action taken by an informed party to reveal private information to an
uninformed party
moral hazard - ANS ✔✔one party takes risks that will be experienced by a third party; ex. rental
car
Accrual Accounting - ANS ✔✔recording in each fiscal period applicable expenses, whether paid
or not, and income earned, whether collected or not.
periodicity - ANS ✔✔typical reporting period - 12 months
cut off - ANS ✔✔point in time at which one reporting period ends and the next begins
Statement of Financial Position - ANS ✔✔balance sheet
A = L + E - ANS ✔✔formula
3 components of equity - ANS ✔✔contributed capital, retained earnings, and reserves
answers 2025/2026
information - ANS ✔✔evidence that can potentially affect an individuals decisions
Adverse Selection - ANS ✔✔one party to a transaction takes advantage of knowing more than
the other party to the transaction
signaling - ANS ✔✔an action taken by an informed party to reveal private information to an
uninformed party
moral hazard - ANS ✔✔one party takes risks that will be experienced by a third party; ex. rental
car
Accrual Accounting - ANS ✔✔recording in each fiscal period applicable expenses, whether paid
or not, and income earned, whether collected or not.
periodicity - ANS ✔✔typical reporting period - 12 months
cut off - ANS ✔✔point in time at which one reporting period ends and the next begins
Statement of Financial Position - ANS ✔✔balance sheet
A = L + E - ANS ✔✔formula
3 components of equity - ANS ✔✔contributed capital, retained earnings, and reserves
