MBA 601 Exam 1 includes accurate and verified
questions covering foundational business
concepts such as managerial economics,
organizational behavior, marketing principles,
financial analysis, and strategic decision-making.
Designed for graduate-level
You are considering purchasing a bond. The bond will pay you
$100 at the end of each year for 20 yrs. At the end of the 20th
year, the bond will also pay you back its $1,000 face value.
Assuming a 4% discount rate, how much is this bond worth
today? - ANSWER--$1,815
What is the present value of a $500 annuity where n=1,000,000
and the discount rate is 4%? - ANSWER--$12,500
Businesses earn profits by converting financial, physical, and
labor resources into goods and services that satisfy consumer
demands. This statement is - ANSWER--True
Resource owners want to provide resourecs to businesses with
high profit potential because those businesses will pay higher
taxes. This statement is - ANSWER--False.
When businesses must pay taxes, there is less profit available to
share with resource owners. Thus, resource owners want to avoid
the consequences of taxation. Resource owners are willing to
provide resources to companies with high profits because
, MBA 601 Exam 1 includes accurate and verified
questions covering foundational business
concepts such as managerial economics,
organizational behavior, marketing principles,
financial analysis, and strategic decision-making.
Designed for graduate-level
businesses have more profits to share with owners, are able to
pay more interest to creditors, and are in a better position to pay
higher prices for physical resources and wages.
(t/f): Accounting provides a service to society by gathering
information about a company's profit potential. - ANSWER--True
(T/F): The primary purpose of managerial accounting is to prepare
financial statements in accordance with a reporting framework. -
ANSWER--False.
The primary purpose is to assist managers within the company in
determining how much it costs to acquire resources and convert
them into saleable goods and services.
Generally Accepted Accounting Principles (GAAP) are designed
to provide guidance for - ANSWER--financial accounting.
Which of the following types of businesses require financial
information to operate effectively? - ANSWER--All businesses
require financial information.
, MBA 601 Exam 1 includes accurate and verified
questions covering foundational business
concepts such as managerial economics,
organizational behavior, marketing principles,
financial analysis, and strategic decision-making.
Designed for graduate-level
Public accountants perform which of the following functions to
ensure that financial information provided by a company to
investors is in accordance with GAAP? - ANSWER--Conduct an
audit.
How accounting transactions are recorded will vary depending on
the entity perspective taken. - ANSWER--True
The three primary types of reporting entities are consumers,
resource owners, and businesses. - ANSWER--True
John borrowed $500,000 from Stone Creek Bank to open a new
restaurant called Sauce-it-up. John transferred $450,000 of the
cash he borrowed to the restaurant on the first day of the year.
How many reporting entities will exist in this scenario? -
ANSWER--3, John, the bank, and the restaurant.
Ellen and her brother Buster started Elder Company when they
each invested $600 in the company. After the investments there
will be how many entities? - ANSWER--3
, MBA 601 Exam 1 includes accurate and verified
questions covering foundational business
concepts such as managerial economics,
organizational behavior, marketing principles,
financial analysis, and strategic decision-making.
Designed for graduate-level
Paul purchased a restaurant named Burger Haven from Larry.
The purchase would cause the number of reporting entities to -
ANSWER--remain constant.
There are 3 reporting entities that existed before and after the
purchase.
What is the accurate definition of the term asset? - ANSWER--A
resource that will be used to produce revenue.
Which of the following is not a source of assets?
Creditors
Investors
Operations
All are sources of assets - ANSWER--All are sources of assets.
Businesses can borrow assets from creditors, acquire them from
investors (owners), or generate them through operations.
questions covering foundational business
concepts such as managerial economics,
organizational behavior, marketing principles,
financial analysis, and strategic decision-making.
Designed for graduate-level
You are considering purchasing a bond. The bond will pay you
$100 at the end of each year for 20 yrs. At the end of the 20th
year, the bond will also pay you back its $1,000 face value.
Assuming a 4% discount rate, how much is this bond worth
today? - ANSWER--$1,815
What is the present value of a $500 annuity where n=1,000,000
and the discount rate is 4%? - ANSWER--$12,500
Businesses earn profits by converting financial, physical, and
labor resources into goods and services that satisfy consumer
demands. This statement is - ANSWER--True
Resource owners want to provide resourecs to businesses with
high profit potential because those businesses will pay higher
taxes. This statement is - ANSWER--False.
When businesses must pay taxes, there is less profit available to
share with resource owners. Thus, resource owners want to avoid
the consequences of taxation. Resource owners are willing to
provide resources to companies with high profits because
, MBA 601 Exam 1 includes accurate and verified
questions covering foundational business
concepts such as managerial economics,
organizational behavior, marketing principles,
financial analysis, and strategic decision-making.
Designed for graduate-level
businesses have more profits to share with owners, are able to
pay more interest to creditors, and are in a better position to pay
higher prices for physical resources and wages.
(t/f): Accounting provides a service to society by gathering
information about a company's profit potential. - ANSWER--True
(T/F): The primary purpose of managerial accounting is to prepare
financial statements in accordance with a reporting framework. -
ANSWER--False.
The primary purpose is to assist managers within the company in
determining how much it costs to acquire resources and convert
them into saleable goods and services.
Generally Accepted Accounting Principles (GAAP) are designed
to provide guidance for - ANSWER--financial accounting.
Which of the following types of businesses require financial
information to operate effectively? - ANSWER--All businesses
require financial information.
, MBA 601 Exam 1 includes accurate and verified
questions covering foundational business
concepts such as managerial economics,
organizational behavior, marketing principles,
financial analysis, and strategic decision-making.
Designed for graduate-level
Public accountants perform which of the following functions to
ensure that financial information provided by a company to
investors is in accordance with GAAP? - ANSWER--Conduct an
audit.
How accounting transactions are recorded will vary depending on
the entity perspective taken. - ANSWER--True
The three primary types of reporting entities are consumers,
resource owners, and businesses. - ANSWER--True
John borrowed $500,000 from Stone Creek Bank to open a new
restaurant called Sauce-it-up. John transferred $450,000 of the
cash he borrowed to the restaurant on the first day of the year.
How many reporting entities will exist in this scenario? -
ANSWER--3, John, the bank, and the restaurant.
Ellen and her brother Buster started Elder Company when they
each invested $600 in the company. After the investments there
will be how many entities? - ANSWER--3
, MBA 601 Exam 1 includes accurate and verified
questions covering foundational business
concepts such as managerial economics,
organizational behavior, marketing principles,
financial analysis, and strategic decision-making.
Designed for graduate-level
Paul purchased a restaurant named Burger Haven from Larry.
The purchase would cause the number of reporting entities to -
ANSWER--remain constant.
There are 3 reporting entities that existed before and after the
purchase.
What is the accurate definition of the term asset? - ANSWER--A
resource that will be used to produce revenue.
Which of the following is not a source of assets?
Creditors
Investors
Operations
All are sources of assets - ANSWER--All are sources of assets.
Businesses can borrow assets from creditors, acquire them from
investors (owners), or generate them through operations.
