TEST BANK Financial & Managerial Accounting for MBAs, by Easton, Halsey, McAnally, Hartgraves & Morse The latest 6th edition latest update the newest available Grade A+

TEST BANK
Financial & Managerial Accounting for MBAs, by
Easton, Halsey, McAnally, Hartgraves & Morse The
latest 7th edition

,Module 1 – Financial Accounting For Mbas
1. Which Of The Following Organizations Does Not Contribute To The Formation Of GAAP?

a. FASB (Financial Accounting Standards Board)
b. IRS (Internal Revenue Service)
c. AICPA (American Institute Of Certified Public Accountants)
d. SEC (Securities And Exchange

Commission) Ans: B


2. Rocky Beach Reports The Following Dollar Balances In Its Retained Earnings Account.

($ Millions) 2017 2016
Retained Earnings…………. 8,968.1 8,223.9

During 2017, Rocky Beach Reported Net Income Of $1,351.4 Million. What
Amount Of Dividends, If Any, Did Rocky Beach Pay To Its Shareholders In
2017?

a. $607.2 Million
b. No Dividends Paid
c. $301.2 Million
d. $744.2

Million Ans: A

Computation Of Dividends
Beginning Retained Earnings, 2017 $8,223.9
............................................................................
+ Net Income 1,351.4
...............................................................................................................
..
– Cash (?)
Dividends...............................................................................................
............
= Ending Retained Earnings, 2017 $8,968.1
.................................................................................

Thus, Dividends Were $607.2 Million For 2017.
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1-2 Financial & Managerial Accounting for MBAs, 5th Edition

,3. At The Beginning Of A Recent Year, The Walt Disney Company’s Liabilities
Equaled $26,197 Million. During The Year, Assets Increased By $400 Million
And Year-End Assets Equaled $50,388 Million. Liabilities Decreased $100
Million During The Year.

What Were Beginning And Ending Amounts For Walt Disney’s Equity?

a. $26,197 Million Beginning Equity And $24,291 Million Ending Equity
b. $23,791 Million Beginning Equity And $27,042 Million Ending Equity
c. $23,791 Million Beginning Equity And $24,291 Million Ending Equity
d. $27,042 Million Beginning Equity And $25,183

Million Ending Equity Ans: C

Using The Accounting Equation At The Beginning Of The Year:
Assets($50,388 - $400) = Liabilities($26,197) + Equity(?)
Thus: Beginning Equity = $23,791

Using The Accounting Equation At The End Of The Year:
Assets($50,388) = Liabilities($26,197 - $100) + Equity(?)
Thus: Ending Equity = $24,291


4. Assume That Starbucks Reported Net Income For A Recent Year Of $564
Million. Its Stockholders’ Equity Is $2,229 Million And $2,090 Million,
Respectively.

Compute Its Return On Equity.

a. 13.0%
b. 22.8%
c. 26.1%
d. 32.7%

Ans: C

ROE = Net Income / Average Stockholders’ Equity
= $564 Million / [($2,229 Million + $2,090 Million) / 2] = 26.1%


5. Nokia Manufactures, Markets, And Sells Phones And Other Electronics.

, Assume That Nokia Reported Net Income Of €3,582 On Sales Of €34,191 And
Total Stockholders’ Equity Of €14,576 And €14,871, Respectively.

What Is Nokia’s Return On Equity?

a. 24.3%
b. 42.3%
c. 17.7%
d. 10.5%

Ans: A

Return On Equity Is Net Income Divided By The Average Total
Stockholders’ Equity. Nokia’s ROE: €3,582 / *(€14,576 + €14,871) /
2] = 24.3%.




Cambridge Business Publishers, ©2018
1-4 Financial & Managerial Accounting for MBAs, 5th Edition