Woodcrest Study guides, Class notes & Summaries

MGMT 200- Purdue University (Exam 1) Accounting is a system of maintaining records of a company's operations and communication that information to decision makers. - Correct answer-True What makes accounting a valuable discipline? - Correct answer-Provides information to make decisions Financial accounting does not deal with which of the following? - Correct answerProviding information to internal users Which of the following groups is not among the external users for whom financial stat...

Woodcrest, Inc. borrowed $50,000 from a local bank and signed a promissory note. What entry should Woodcrest record? A. Debit Cash, $50,000; Credit Notes Receivable, $50,000. B. Debit Notes Receivable, $50,000; Credit Cash, $50,000. C. Debit Cash, $50,000; Credit Notes Payable, $50,000. D. Debit Notes Payable, $50,000; Credit Cash, $50,000. - Correct Answer -C True or False: We record interest expense in the period in which we pay it, rather than in the period we incur it - Correct Answer -Fa...

Which of the following would be recorded as an expense under cash‐basis accounting? A. The company purchases equipment by borrowing from the bank. B. The company uses utilities in the current period but does not pay cash. C. The company purchases office supplies with cash and does not use the supplies. D. The company provides services to customers for cash. - Correct answerWhat is the process of identifying, measuring, and communicating economic information to various users? A. Accounti...