FINANCIAL ACCOUNTING FOR MBAS
FINAL PAPER FULL QUESTIONS AND
CORRECT ANSWERS ALREADY PASSED
●● Who needs accounting information
Answer: 1. managers and employees
2. investment analysts and information intermediaries
3. creditors and suppliers
4. stockholders and directors
5. customers and strategic partners
6. regulators and tax agencies
7. voters and their representatives
●● Managers and employees
Answer: need financial accounting information for current and future
financial health.
●● Investment and information intermediaies
Answer: need financial accounting information to predict companies
future performance
●● Creditors and suppliers
,Answer: need financial accounting information to help determine loan
terms, loan amount, interest rate and required collateral
●● Stockholders and directors
Answer: need financial accounting information to assess the profitability
and risk of companies and other useful information in their investment
decisions
●● Customers and strategic partners
Answer: need financial accounting information to assess a company's
ability to provide products or services and to assess the company's
staying power and reliability
●● Regulators and tax agencies
Answer: need financial accounting information for antitrust assessments,
public protection, setting prices, import-export analyses, and setting tax
policies
●● Voters and their representatives
Answer: need financial accounting information for economic, social,
taxation, and other initiatives and to monitor government spending
●● Form 10-K
, Answer: the annual report that publicly traded companies must file with
the SEC
-form has to be audited
●● Form 10-Q
Answer: the quarterly report that publicly traded companies must file
with the SEC -form does not need to be audited
●● Benefits of disclosure
Answer: extend to company's capital, labor, input, and output markets
●● Cost of disclosure
Answer: preparation & dissemination of financial info; competitive
disadvantages, litigation potential & potential costs
●● Four financial statements to periodically report on business activities
Answer: 1. balance sheet
2. income statement
3. statement of stockholders' equity
4. statement of cash flows
●● balance sheet
FINAL PAPER FULL QUESTIONS AND
CORRECT ANSWERS ALREADY PASSED
●● Who needs accounting information
Answer: 1. managers and employees
2. investment analysts and information intermediaries
3. creditors and suppliers
4. stockholders and directors
5. customers and strategic partners
6. regulators and tax agencies
7. voters and their representatives
●● Managers and employees
Answer: need financial accounting information for current and future
financial health.
●● Investment and information intermediaies
Answer: need financial accounting information to predict companies
future performance
●● Creditors and suppliers
,Answer: need financial accounting information to help determine loan
terms, loan amount, interest rate and required collateral
●● Stockholders and directors
Answer: need financial accounting information to assess the profitability
and risk of companies and other useful information in their investment
decisions
●● Customers and strategic partners
Answer: need financial accounting information to assess a company's
ability to provide products or services and to assess the company's
staying power and reliability
●● Regulators and tax agencies
Answer: need financial accounting information for antitrust assessments,
public protection, setting prices, import-export analyses, and setting tax
policies
●● Voters and their representatives
Answer: need financial accounting information for economic, social,
taxation, and other initiatives and to monitor government spending
●● Form 10-K
, Answer: the annual report that publicly traded companies must file with
the SEC
-form has to be audited
●● Form 10-Q
Answer: the quarterly report that publicly traded companies must file
with the SEC -form does not need to be audited
●● Benefits of disclosure
Answer: extend to company's capital, labor, input, and output markets
●● Cost of disclosure
Answer: preparation & dissemination of financial info; competitive
disadvantages, litigation potential & potential costs
●● Four financial statements to periodically report on business activities
Answer: 1. balance sheet
2. income statement
3. statement of stockholders' equity
4. statement of cash flows
●● balance sheet
