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MBA503
Exam Study Guide*
*Answers are shown as "Correct"
1. The rule-making authority within the U.S. that is responsible for promulgating new financial accounting standards is the
a. Federal Accounting Standards Board.
b. American Institute of Certified Public Accountants.
c. Financial Accounting Standards Board. (Correct)
d. Governmental Accounting Standards Board.
e. Institute of Management Accountants.
2. The financial statement that summarizes the assets, liabilities, and stockholders' equity of an entity at a specific point in time is the
a. Balance Sheet. (Correct)
b. Income Statement.
c. Statement of Stockholders' Equity.
d. Statement of Cash Flows.
e. Statement of Fund Balance.
3. At December 31, 2002, Robinson's Home Improvement has $100,000 of assets, $40,000 of liabilities, and $60,000 of stockholders' equity. On January 15, 2003, Robinson's purchased $30,000 of assets by incurring a liability. Robinson's total assets, liabilities, and stockholders' equity at January 15, 2003 (after the purchase) are, respectively, ___, ___, and ___.
a. $130,000; $70,000; $60,000 (Correct)
b. $130,000; $60,000; $70,000
c. $100,000; $40,000; $60,000
d. $100,000; $60,000; $40,000
e. $100,000; $30,000; $70,000
4. Gadsden Lawn and Mowing Service began operations on January 1, 2002. At ...