COMPLETE TEST BANK FOR FINANCIAL ACCOUNTING FOR MBAS 8TH EDITION BY PETER D. EASTON JOHN J. WILD

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FinancialAccountingfor MBAs A




Learning-Objectives-–-Coverage-by-question
True/False MultipleAChoice


LO1A–
AExplainAandAassessAtheAfourAmainAbusinessAacti
vities.

LO2A–AIdentify-
1-A4 1,A2
andAdiscussAtheAusersAandAsuppliersAofAfinancialA
statementAinformation.

LO3A–ADescribeAandAexamineAtheAfour-
5-10 3-19
financialAstatements,AandAdefineAtheAaccounti
ngAequation.

LO4A–AExplainAandAapply-theAbasicsAofAprofitability-
11-13 20-25
Aanalysis.




LO5A–-
14 26,A27
AssessAbusinessAoperationsAwithinAtheAcontext-
AofAaAcompetitive Aenvironment.


LO6A–
AAccessAreportsAfiledAwithAtheASECA(AppendixA1A).



LO7A–
ADescribe AtheAaccounting Aprinciples AandAregulati 15 28-30
onsAthatAframeAfinancialAstatementsA(Appendix-
A1B).


TheseAquestionsAareAavailableAtoAassignAinAmyBusinessCourse.

,Module-1:-Financial-Accounting-for-MBAs

True/False


Topic:AUsersAof-
FinancialAStatementAInformationALO: A2
1. ShareholdersA demandAfinancialAinformationAprimarily-to-
assessAprofitabilityAandAriskAwhereasAbankersAdemandAinformationAprimarilyAtoAassessAcashAflo
wsAtoArepayAloanAinterestAandAprincipal.

Answer:ATrue
Rationale:AWhileAbothAshareholdersAandAbankersAareAinterestedAinAallAtheAinformationAcompani
esAprovide,AshareholdersAcareAaboutAmoreAaboutAaAcompany‘sAprofitabilityAandAbankersAcareA
moreAaboutAsolvency-andAcreditworthiness.


Topic:APublicly-
AvailableAFinancialAReportsALO:A2
2. Publicly-tradedAcompaniesAareArequiredAtoAprovideAquarterly-financialAreportsAdirectlyAtoAtheApublic.

Answer:AFalse
Rationale:ACompaniesAprovideAelectronicAversionsAof-
quarterlyAfinancialAstatementsAtoAtheASEC,AwhichApostsAthemAtoAtheAInternetAforAthe-
publicAtoAaccessAthem.


Topic:AUsersAof-
FinancialAStatementAInformationALO: A2
3. Publicly-tradedAcompaniesAprovideAfinancialAinformationAprimarily-toAsatisfyAtheASECAandAtheAtax-
authoritiesA(thatAis,AtheAInternalARevenueAService).

Answer:AFalse
Rationale:ADemandAforAinformationAextendsAtoAmanyAusers;AtheAregulatorsAsuchAasAtheASECAand
AtheAIRSAareAonlyAoneAclassAofAusers.



Topic:ASECAFi
lingsALO: A2
4. PubliclyAtradedAcompaniesAmustAprovide-
toAtheASecuritiesAExchangeACommissionAannualAauditedAfinancialAstatementsA(10-
KAreports)AandAquarterlyAauditedAfinancialAstatementsA(10-QAreports).

Answer:AFalse
Rationale:AQuarterlyAreportsAdoAnotAneedAtoAbeAaudited.


Topic:ABalanc
eASheetALO: A
3
5. IfAaAcompanyAreportsAretainedAearningsAofA$175.3AmillionAonAitsAbalanceAsheet,Ait-
mustAalsoAreport-$175.3AmillionAinAcash.

Answer:AFalse

, Rationale:ATheAaccountingA equationA requiresA totalAassetsA toA equalAtotalAliabilitiesA plusA stockh
olders‘Aequity.AThatAdoesAnotAimply,Ahowever,Athat-liabilityAandAequity-accountsArelateAdirectly-
toAspecificAassets.