MGT 101 QUESTIONS WITH VERIFIED ACCURATE
ANSWERS
To provide external shareholders with relevant, reliable, consistent, and comparable
financial information, the accounting profession has adopted ___ to guide the practice of
financial accounting - Answers -generally accepted accounting principles (GAAP)
__ Is/are the claims owners have against the firms assets - Answers -Owners' Equity
The income statement shows that - Answers -Revenue - Expenses = Net Income
The Amount of cash at the end of the period, as refelected on the statement of cash
flows, should match the - Answers -Cash on the current balance sheet
This is not an asset - Answers -Salaries payable
The Two broad sources of financing for a firm are - Answers -retained earnings and
assets
This would be listed on an income statement - Answers -Cost of goods sold
Profit is the difference between - Answers -revenue and expenses
If a firm's assets =$6,000 and its liabilities = $3,500, then owners' equity = - Answers -
$2,500
The statement of cash flows shows a firm's - Answers -sources and uses of cash that
result from its operating, investing, and financing activities
Lattadoe's liabilities are $130,000 and its owners' equity is $170,000. this means that
Lattodoe's - Answers -Total assets are $300,000
Sabiha is the small business loan officer at Regional National Bank. It is her job to
approve loans for small businesses so that the local economy will grow. One factor she
looks at carefully when making loan decisions is the amount of debt the firm already has
outstanding. She can find this information by looking at the firm's - Answers -balance
sheet
A firm's current liabilities - Answers -are due in less than a year
A firm's cost of goods sold is subtracted from the __ on the __ in order to compute the
firm's __. - Answers -revenue; income statement; gross profit
ANSWERS
To provide external shareholders with relevant, reliable, consistent, and comparable
financial information, the accounting profession has adopted ___ to guide the practice of
financial accounting - Answers -generally accepted accounting principles (GAAP)
__ Is/are the claims owners have against the firms assets - Answers -Owners' Equity
The income statement shows that - Answers -Revenue - Expenses = Net Income
The Amount of cash at the end of the period, as refelected on the statement of cash
flows, should match the - Answers -Cash on the current balance sheet
This is not an asset - Answers -Salaries payable
The Two broad sources of financing for a firm are - Answers -retained earnings and
assets
This would be listed on an income statement - Answers -Cost of goods sold
Profit is the difference between - Answers -revenue and expenses
If a firm's assets =$6,000 and its liabilities = $3,500, then owners' equity = - Answers -
$2,500
The statement of cash flows shows a firm's - Answers -sources and uses of cash that
result from its operating, investing, and financing activities
Lattadoe's liabilities are $130,000 and its owners' equity is $170,000. this means that
Lattodoe's - Answers -Total assets are $300,000
Sabiha is the small business loan officer at Regional National Bank. It is her job to
approve loans for small businesses so that the local economy will grow. One factor she
looks at carefully when making loan decisions is the amount of debt the firm already has
outstanding. She can find this information by looking at the firm's - Answers -balance
sheet
A firm's current liabilities - Answers -are due in less than a year
A firm's cost of goods sold is subtracted from the __ on the __ in order to compute the
firm's __. - Answers -revenue; income statement; gross profit
