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MBA 601 Exam 1 Study Guide 2025 – Key Concepts,
Practice Questions, and Business Fundamentals Review
Prepare for your MBA 601 Exam 1 (2025) with this detailed study guide and practice test.
Review business strategy, leadership, microeconomics, and organizational behavior concepts to
master foundational MBA knowledge and excel in your first graduate business exam.
MBA 601 exam 1 2025
MBA 601 study guide
MBA foundations exam questions
MBA managerial economics exam 1
Mary Company collected cash from an account receivable. The recognition of the cash collection will
affect which of the following financial statements? - ANSWER-Balance sheet and the statement of cash
flows
Paying cash to settle a salaries payable obligation will affect which section of the statement of cash
flows? - ANSWER-Operating activities
The amount of revenue shown on the income statement may differ from the amount of cash inflow from
operating activities shown on the statement of cash flows. This statement is (true/false) - ANSWER-True
On November 1, Year 1 Cove Company borrowed $7,000 cash to from Shelter Company. The one-year
note carried a 7% rate of interest. Which of the following shows how the loan will affect Cove's financial
statements on November 1, Year 1? - ANSWER-A = 7,000
L = 7,000
Cash Flows = 7,000 FA
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Accrued interest expense will appear on the income statement but not on the statement of cash flows.
This statement is
(True/False) - ANSWER-True
GreyCo and Sons earns $6,900 of revenue on account in Year 1. Cash collections of receivables amount
to $6,300 in Year 1 with the remainder being collected in Year 2. Based on this information alone the
company's financial statements would show - ANSWER-a balance of $600 in accounts receivable at the
beginning Year 2.
Guadalupe, Inc. provided $5,000 of services in Year 1 but did not collect cash from its customers until
Year 2. Select the correct answer from the following options assuming Guadalupe used accrual
accounting. - ANSWER-The Company will recognize $5,000 of revenue in Year 1 and $5,000 of cash flow
from operations in Year 2.
During Year 1, Pang Enterprises experienced the following events.
(1) Earned $4,000 of revenue on account.
(2) Collected $3,500 cash from accounts receivable.
The remainder of the receivable was collected in Year 2. Based on this information, the amount of
accounts receivable, net income, and cash flow from operating activities appearing on the Year 2
financial statements is - ANSWER-AR = 0
NI = 0
Cash Flow + $500 OA
If a company recognizes accrued salary expense - ANSWER-the employees have completed work but
have not been paid.
The accounts payable account appears on - ANSWER-the balance sheet.
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When a company incurs accrued expenses - ANSWER--the liability account, accounts payable, increases.
-stockholders' equity decreases.
-assets are not affected.
On December 31, Year 1 Hilton Company recognized $600 of accrued salary expense. Hilton paid cash to
the employees in Year 2. Which of the following shows how these events will affect Hilton's accounting
equation on December 31, Year 1? - ANSWER-SP = 600
RE = (600)
Which of the following shows how recognizing accrued expense will affect a company's financial
statements? - ANSWER-L +
E-
Exp +
NI -
Cash Flow NA
In Year 1 Day Company incurred $350 of utility expense on account. Day paid cash for these expenses in
Year 2. Which of the following shows how these events will affect Day's accounting equation in Year 2? -
ANSWER-Cash (350)
AP (350)
Which of the following shows how paying off an accrued liability such as salaries payable will affect a
company's financial statements? - ANSWER-A -
L-
Cash Flow -OA
If a company recognizes $5,000 of accrued salary expense on December 31, Year 1, - ANSWER--on
January 1, Year 2 there will be a zero balance in the Accrued Salaries Expense account.
-on January 1, Year 2 there will be a $5,000 balance in the Accrued Salaries Payable account.
-the December 31, Year 1 expense recognition will not affect the cash account.
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Knopp Company experienced an event that had the following effects on its financial statements.
Balance SheetIncome StatementStatement ofCash Flows
Assets=Liab.+EquityRev.−Exp.=Net Inc.
NA + −NA + −NA
Which of the following events would have caused these effects? - ANSWER-Recognized accrued salary
expense
During year 1 Xing Enterprises experienced the following events.
(1) Earned $4,000 of revenue on account
(2) Incurred $3,500 of expenses on account
Based on this information the amount of total assets, net income, and cash flow from operating activities
appearing on the year 1 financial statements is - ANSWER-TA = 4,000
NI = 500
Cash Flow = 0
(do statement model)
Accounts receivable will appear on which of the following financial statements? - ANSWER-Balance sheet
Accounts payable will appear on which of the following financial statements? - ANSWER-Balance sheet
Garcia Company recognized revenue on account. The recognition will affect which of the following
financial statements? - ANSWER-Income statement and the balance sheet
Yang Company recognized accrued salary expense. The recognition will affect which of the following
financial statements? - ANSWER-Income statement and the balance sheet
MBA 601 Exam 1 Study Guide 2025 – Key Concepts,
Practice Questions, and Business Fundamentals Review
Prepare for your MBA 601 Exam 1 (2025) with this detailed study guide and practice test.
Review business strategy, leadership, microeconomics, and organizational behavior concepts to
master foundational MBA knowledge and excel in your first graduate business exam.
MBA 601 exam 1 2025
MBA 601 study guide
MBA foundations exam questions
MBA managerial economics exam 1
Mary Company collected cash from an account receivable. The recognition of the cash collection will
affect which of the following financial statements? - ANSWER-Balance sheet and the statement of cash
flows
Paying cash to settle a salaries payable obligation will affect which section of the statement of cash
flows? - ANSWER-Operating activities
The amount of revenue shown on the income statement may differ from the amount of cash inflow from
operating activities shown on the statement of cash flows. This statement is (true/false) - ANSWER-True
On November 1, Year 1 Cove Company borrowed $7,000 cash to from Shelter Company. The one-year
note carried a 7% rate of interest. Which of the following shows how the loan will affect Cove's financial
statements on November 1, Year 1? - ANSWER-A = 7,000
L = 7,000
Cash Flows = 7,000 FA
,2|Page
Accrued interest expense will appear on the income statement but not on the statement of cash flows.
This statement is
(True/False) - ANSWER-True
GreyCo and Sons earns $6,900 of revenue on account in Year 1. Cash collections of receivables amount
to $6,300 in Year 1 with the remainder being collected in Year 2. Based on this information alone the
company's financial statements would show - ANSWER-a balance of $600 in accounts receivable at the
beginning Year 2.
Guadalupe, Inc. provided $5,000 of services in Year 1 but did not collect cash from its customers until
Year 2. Select the correct answer from the following options assuming Guadalupe used accrual
accounting. - ANSWER-The Company will recognize $5,000 of revenue in Year 1 and $5,000 of cash flow
from operations in Year 2.
During Year 1, Pang Enterprises experienced the following events.
(1) Earned $4,000 of revenue on account.
(2) Collected $3,500 cash from accounts receivable.
The remainder of the receivable was collected in Year 2. Based on this information, the amount of
accounts receivable, net income, and cash flow from operating activities appearing on the Year 2
financial statements is - ANSWER-AR = 0
NI = 0
Cash Flow + $500 OA
If a company recognizes accrued salary expense - ANSWER-the employees have completed work but
have not been paid.
The accounts payable account appears on - ANSWER-the balance sheet.
,3|Page
When a company incurs accrued expenses - ANSWER--the liability account, accounts payable, increases.
-stockholders' equity decreases.
-assets are not affected.
On December 31, Year 1 Hilton Company recognized $600 of accrued salary expense. Hilton paid cash to
the employees in Year 2. Which of the following shows how these events will affect Hilton's accounting
equation on December 31, Year 1? - ANSWER-SP = 600
RE = (600)
Which of the following shows how recognizing accrued expense will affect a company's financial
statements? - ANSWER-L +
E-
Exp +
NI -
Cash Flow NA
In Year 1 Day Company incurred $350 of utility expense on account. Day paid cash for these expenses in
Year 2. Which of the following shows how these events will affect Day's accounting equation in Year 2? -
ANSWER-Cash (350)
AP (350)
Which of the following shows how paying off an accrued liability such as salaries payable will affect a
company's financial statements? - ANSWER-A -
L-
Cash Flow -OA
If a company recognizes $5,000 of accrued salary expense on December 31, Year 1, - ANSWER--on
January 1, Year 2 there will be a zero balance in the Accrued Salaries Expense account.
-on January 1, Year 2 there will be a $5,000 balance in the Accrued Salaries Payable account.
-the December 31, Year 1 expense recognition will not affect the cash account.
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Knopp Company experienced an event that had the following effects on its financial statements.
Balance SheetIncome StatementStatement ofCash Flows
Assets=Liab.+EquityRev.−Exp.=Net Inc.
NA + −NA + −NA
Which of the following events would have caused these effects? - ANSWER-Recognized accrued salary
expense
During year 1 Xing Enterprises experienced the following events.
(1) Earned $4,000 of revenue on account
(2) Incurred $3,500 of expenses on account
Based on this information the amount of total assets, net income, and cash flow from operating activities
appearing on the year 1 financial statements is - ANSWER-TA = 4,000
NI = 500
Cash Flow = 0
(do statement model)
Accounts receivable will appear on which of the following financial statements? - ANSWER-Balance sheet
Accounts payable will appear on which of the following financial statements? - ANSWER-Balance sheet
Garcia Company recognized revenue on account. The recognition will affect which of the following
financial statements? - ANSWER-Income statement and the balance sheet
Yang Company recognized accrued salary expense. The recognition will affect which of the following
financial statements? - ANSWER-Income statement and the balance sheet
