MGA 201 QUIZ #1 {LATEST 2026 -2027
update} QUESTIONS AND ANSWERS 100%
CORRECT
The four main groups of external users - correct answer creditors, investors,
directors, and the government
Creditors - correct answer include suppliers, banks, and anyone to whom money is
owed
Investors - correct answer include existing and potential stockholders. Stockholders
look to accounting information to assesses the financial strength of a business and
ultimately, to estimate its value
Ethics - correct answer the principles of right and wrong that guide an individual in
making decisions
, Directors - correct answer is the short title for the members of a company's board of
directors. The stockholders of public companies or large private companies elect
directors to oversee the company's managers. Directors use financial statements to
ensure the company's managers make decisions that are in the best financial interests
of its stockholders.
Government - correct answer agencies look closely at companies financial
statements.
Basic accounting equation - correct answer assets = liabilities + stockholders' equity
Separate entity assumption - correct answer the separation between stockholders and
business
update} QUESTIONS AND ANSWERS 100%
CORRECT
The four main groups of external users - correct answer creditors, investors,
directors, and the government
Creditors - correct answer include suppliers, banks, and anyone to whom money is
owed
Investors - correct answer include existing and potential stockholders. Stockholders
look to accounting information to assesses the financial strength of a business and
ultimately, to estimate its value
Ethics - correct answer the principles of right and wrong that guide an individual in
making decisions
, Directors - correct answer is the short title for the members of a company's board of
directors. The stockholders of public companies or large private companies elect
directors to oversee the company's managers. Directors use financial statements to
ensure the company's managers make decisions that are in the best financial interests
of its stockholders.
Government - correct answer agencies look closely at companies financial
statements.
Basic accounting equation - correct answer assets = liabilities + stockholders' equity
Separate entity assumption - correct answer the separation between stockholders and
business
