MGA 201 FINAL EXAM {LATEST 2026 -2027
update} QUESTIONS AND ANSWERS 100%
CORRECT
The Statement of Cash Flows - correct answer Summarizes how a business's
operating, investing, and financing activities caused its cash balance to change over a
particular period of time.
Accounting Transactions - correct answer A transaction is a business activity that
affects the basic accounting equation.
Basic Accounting Equation - correct answer Assets= Liabilities + Stockholders Equity
,Corporations - correct answer Separate entity from both a legal and accounting
perspective. Owners of corporations (stockholders) are not personally responsible for
debts of the corporation
Separate Entity Assumption - correct answer requires that a business's financial
reports include only the activities of the business and not those of its stockholders
Assets - correct answer Resources controlled by the company that have measurable
value and are expected to provide future benefits. E.x. Cash, supplies, equiptment
Liabilities - correct answer Amounts owed by the business to creditors. E.x. Notes
payable, accounts payable
Stockholders Equity - correct answer Owners claim to the business resources. E.x.
Common stock, retained earnings
,Revenues, Expenses, and Net Income - correct answer Revenues - Expenses = Net
Income
Revenues - correct answer Sales of goods or services to customers. Measured at the
amount the business charges the customer.
Expenses - correct answer The costs of business necessary to earn revenues,
including wages to employees, advertising, and utilities
Dividends - correct answer Distributions of a company's earnings to its stockholders
as a return on their investment. NOT and expense
Financial Statements Prepared in this Order - correct answer Income Statement -
Statement of Retained Earnings - Balance Sheet - Statement of Cash Flows
, The Income Statement - correct answer Reports the amount of revenues less
expenses for a period of time.
The Statement of Retained Earnings - correct answer Reports the way that net income
and the distribution of dividends affected the financial position of the company during
the period
Duality of Effects - correct answer Every transaction has at least two effects on the
basic accounting equation.
A = L + SE - correct answer Assets must equal liabilities and stockholders equity for
every accounting transaction.
update} QUESTIONS AND ANSWERS 100%
CORRECT
The Statement of Cash Flows - correct answer Summarizes how a business's
operating, investing, and financing activities caused its cash balance to change over a
particular period of time.
Accounting Transactions - correct answer A transaction is a business activity that
affects the basic accounting equation.
Basic Accounting Equation - correct answer Assets= Liabilities + Stockholders Equity
,Corporations - correct answer Separate entity from both a legal and accounting
perspective. Owners of corporations (stockholders) are not personally responsible for
debts of the corporation
Separate Entity Assumption - correct answer requires that a business's financial
reports include only the activities of the business and not those of its stockholders
Assets - correct answer Resources controlled by the company that have measurable
value and are expected to provide future benefits. E.x. Cash, supplies, equiptment
Liabilities - correct answer Amounts owed by the business to creditors. E.x. Notes
payable, accounts payable
Stockholders Equity - correct answer Owners claim to the business resources. E.x.
Common stock, retained earnings
,Revenues, Expenses, and Net Income - correct answer Revenues - Expenses = Net
Income
Revenues - correct answer Sales of goods or services to customers. Measured at the
amount the business charges the customer.
Expenses - correct answer The costs of business necessary to earn revenues,
including wages to employees, advertising, and utilities
Dividends - correct answer Distributions of a company's earnings to its stockholders
as a return on their investment. NOT and expense
Financial Statements Prepared in this Order - correct answer Income Statement -
Statement of Retained Earnings - Balance Sheet - Statement of Cash Flows
, The Income Statement - correct answer Reports the amount of revenues less
expenses for a period of time.
The Statement of Retained Earnings - correct answer Reports the way that net income
and the distribution of dividends affected the financial position of the company during
the period
Duality of Effects - correct answer Every transaction has at least two effects on the
basic accounting equation.
A = L + SE - correct answer Assets must equal liabilities and stockholders equity for
every accounting transaction.
