MBA 510 ACCOUNTING EXAM 1
QUESTIONS AND ANSWERS. VERIFIED
2026.
All of the following are part of the FASB conceptual framework: (Select all that apply). - ANS -
Objectives
- Recognition and measurement
- Elements
- Qualitative characteristics
Which of the following statements describes the effect of expenses on equity? -
ANS Expenses cause equity to decrease
An employee that is having trouble paying his personal bills might exhibit the following fraud
factor: - ANS Pressure
What are Generally Accepted Accounting Principles? - ANS The concepts and rules that
govern financial accounting practice.
The ______ recognition principle states that revenue is recognized when goods or services are
provided to customers and at an amount expected to be received. - ANS revenue
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Jackson's Programming paid its June rent of $500 cash. Demonstrate how to use the accounting
equation to record the transaction by completing the following sentence. Jackson would
decrease _____ and increase ________ in the accounting equation - ANS cash, expenses
Given the accounts, choose all of the ones that would affect equity - ANS - common stock
- dividends
- revenues
- expenses
Jackson's Catering Company provided cookies worth $3,000 to the local college. The college
paid immediately. Record this transaction in Jackson's accounting equation by: -
ANS increasing Cash; increasing Revenues
Identify the correct definition of an asset: - ANS An asset is a resource that a business owns
or controls
Equity is composed of contributed capital and ______ - ANS retained earnings
Which list of accounts below, identifies only accounts that would appear on a balance sheet. -
ANS Common stock, equipment, accounts payable
The FASB conceptual framework consists of all of the following except: - ANS concepts
Sally Smith decided to start a sea shell business organized as a corporation. Her initial
investment in the business consisted of $10,000 in cash in exchange for common stock. Record
this transaction in the accounting equation of the new business by: - ANS increasing Cash;
increasing Common Stock
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS. VERIFIED
2026.
All of the following are part of the FASB conceptual framework: (Select all that apply). - ANS -
Objectives
- Recognition and measurement
- Elements
- Qualitative characteristics
Which of the following statements describes the effect of expenses on equity? -
ANS Expenses cause equity to decrease
An employee that is having trouble paying his personal bills might exhibit the following fraud
factor: - ANS Pressure
What are Generally Accepted Accounting Principles? - ANS The concepts and rules that
govern financial accounting practice.
The ______ recognition principle states that revenue is recognized when goods or services are
provided to customers and at an amount expected to be received. - ANS revenue
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Jackson's Programming paid its June rent of $500 cash. Demonstrate how to use the accounting
equation to record the transaction by completing the following sentence. Jackson would
decrease _____ and increase ________ in the accounting equation - ANS cash, expenses
Given the accounts, choose all of the ones that would affect equity - ANS - common stock
- dividends
- revenues
- expenses
Jackson's Catering Company provided cookies worth $3,000 to the local college. The college
paid immediately. Record this transaction in Jackson's accounting equation by: -
ANS increasing Cash; increasing Revenues
Identify the correct definition of an asset: - ANS An asset is a resource that a business owns
or controls
Equity is composed of contributed capital and ______ - ANS retained earnings
Which list of accounts below, identifies only accounts that would appear on a balance sheet. -
ANS Common stock, equipment, accounts payable
The FASB conceptual framework consists of all of the following except: - ANS concepts
Sally Smith decided to start a sea shell business organized as a corporation. Her initial
investment in the business consisted of $10,000 in cash in exchange for common stock. Record
this transaction in the accounting equation of the new business by: - ANS increasing Cash;
increasing Common Stock
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
