Financial & Managerial Accounting for MBAs (5th Edition) – Complete Practice Quiz Solutions for Modules 1–3 with Detailed Calculations & Explanations

Financial & Managerial Accounting for MBAs (5th Edition) – Complete Practice Quiz Solutions for Modules 1–3 with Detailed Calculations & ExplanationsFinancial & Managerial Accounting for MBAs, 5th Edition by Easton, Halsey, McAnally, Hartgraves & Morse Practice Quiz Solutions Module 1 – Financial Accounting for MBAs 1. Which of the following organizations does not contribute to the formation of GAAP? a. b. c. d. FASB (Financial Accounting Standards Board) IRS (Internal Revenue Service) AICPA (American Institute of Certified Public Accountants) SEC (Securities and Exchange Commission) Answer: b 2. Rocky Beach reports the following dollar balances in its retained earnings account. ($ millions) Retained earnings…………. ,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. b. c. d. $607.2 million No dividends paid $301.2 million $744.2 million Answer: a Computation of dividends Beginning retained earnings, 2017 ............................................................................ + Net income ................................................................................................................. – Cash dividends........................................................................................................... = Ending retained earnings, 2017 ................................................................................. $8,223.9 1,351.4 (?) $8,968.1 Thus, dividends were $607.2 million for 2017. Practice Quiz Solutions, Module 1 Cambridge Business Publishe ...