Test Bank:
Financial & Managerial Accounting For Mbas,
4th Edition By Easton, Halsey, Mcanally,
Hartgraves & Morse Graded A+
,Table Of Contents
Module 1: Financial Accounting For Mbas ........................................................................................4
Module 2: Introducing Financial Statements And Transaction Analysis............................................2
Module 3: Constructing Financial Statements And Analyzing Transactions ......................................2
Module 5: Reporting And Analyzing Operating Income ....................................................................2
Module 6: Reporting And Analyzing Operating Assets ...................................................................52
Module 7: Reporting And Analyzing Intercorporate Investments ......................................................2
Module 8: Reporting And Analyzing Nonowner Financing ................................................................2
Module 9 – Reporting And Analyzing Owner Financing .....................................................................2
Module 10: Reporting And Analyzing Off-Balance-Sheet Financing.................................................2
Module 11: Adjusting And Forecasting Financial Statements...........................................................2
Module 12: Analyzing And Valuing Equity Securities .....................................................................50
,Module 1
Financial Accounting For Mbas
Learning Objectives – Coverage By Question
True/ Multiple Essay
Exercises Problems
False Choice Questions
Lo1 Identify And
Discuss The
Users And
Suppliers Of
1-4 1-2 - 1 1-2
Financial
Statement
Information.
Lo2 Identify And
Explain The
Four Financial
Statements,
5-10 3-19 1-8 2-5 3
And Define The
Accounting
Equation.
Lo3 Explain And
Apply The Basics
Of Profitability 11-13 20-25 9-10 6-7 4
Analysis.
Lo4 Describe
Business
Analysis Within
The Context Of 14 26-27 - 8 -
A Competitive
Environment.
Lo5 Describe
The Accounting
Principles And
15 28-30 - 9-10 5
Regulations That
Frame Financial
Statements.
, Module 1: Financial Accounting For Mbas
True/False
Topic: Users Of Financial Statement Information
Lo: 1
1. Shareholders Demand Financial Information Primarily To Assess Profitability And Risk
Whereas Bankers Demand Information Primarily To Assess Cash Flows To Repay Loan
Interest And Principle.
Answer: True
Rationale: While Both Shareholders And Bankers Are Interested In All The Information Company’s
Provide, Shareholders Care About More About A Company’s Profitability And Bankers Care More
About Solvency And Creditworthiness.
Topic: Publicly Available Financial
Reports Lo: 1
2. Publicly Traded Companies Are Required To Provide Quarterly Financial Reports Directly To The Public.
Answer: False
Rationale: Companies Provide Electronic Versions Of Quarterly Financial Statements To The Sec
That Posts Them To The Internet For The Public To Access Them.
Topic: Users Of Financial Statement Information
Lo: 1
3. Publicly Traded Companies Provide Financial Information Primarily To Satisfy The Sec And
The Tax Authorities (That Is, The Internal Revenue Service).
Answer: False
Rationale: Demand For Information Extends To Many Users, The Regulators Such As The Sec And
The Irs Are Only One Class Of Users.
Topic: Sec Filings
Lo: 1
4. Publicly Traded Companies Must Provide To The Securities Exchange Commission Annual
Audited Financial Statements (10k Reports) And Quarterly Audited Financial Statements (10q
Reports).
Answer: False
Rationale: Quarterly Reports Do Not Need To Be Audited.
Topic: Balance Sheet
Lo: 2
5. If A Company Reports Retained Earnings Of $175.3 Million On Its Balance Sheet, It Must Also Report
$175.3 Million In Cash.
Answer: False
Rationale: The Accounting Equation Requires Total Assets To Equal Total Liabilities Plus
Stockholders’ Equity. That Does Not Imply, However, That Liability And Equity Accounts Relate
Directly To Specific Assets.
Financial & Managerial Accounting For Mbas,
4th Edition By Easton, Halsey, Mcanally,
Hartgraves & Morse Graded A+
,Table Of Contents
Module 1: Financial Accounting For Mbas ........................................................................................4
Module 2: Introducing Financial Statements And Transaction Analysis............................................2
Module 3: Constructing Financial Statements And Analyzing Transactions ......................................2
Module 5: Reporting And Analyzing Operating Income ....................................................................2
Module 6: Reporting And Analyzing Operating Assets ...................................................................52
Module 7: Reporting And Analyzing Intercorporate Investments ......................................................2
Module 8: Reporting And Analyzing Nonowner Financing ................................................................2
Module 9 – Reporting And Analyzing Owner Financing .....................................................................2
Module 10: Reporting And Analyzing Off-Balance-Sheet Financing.................................................2
Module 11: Adjusting And Forecasting Financial Statements...........................................................2
Module 12: Analyzing And Valuing Equity Securities .....................................................................50
,Module 1
Financial Accounting For Mbas
Learning Objectives – Coverage By Question
True/ Multiple Essay
Exercises Problems
False Choice Questions
Lo1 Identify And
Discuss The
Users And
Suppliers Of
1-4 1-2 - 1 1-2
Financial
Statement
Information.
Lo2 Identify And
Explain The
Four Financial
Statements,
5-10 3-19 1-8 2-5 3
And Define The
Accounting
Equation.
Lo3 Explain And
Apply The Basics
Of Profitability 11-13 20-25 9-10 6-7 4
Analysis.
Lo4 Describe
Business
Analysis Within
The Context Of 14 26-27 - 8 -
A Competitive
Environment.
Lo5 Describe
The Accounting
Principles And
15 28-30 - 9-10 5
Regulations That
Frame Financial
Statements.
, Module 1: Financial Accounting For Mbas
True/False
Topic: Users Of Financial Statement Information
Lo: 1
1. Shareholders Demand Financial Information Primarily To Assess Profitability And Risk
Whereas Bankers Demand Information Primarily To Assess Cash Flows To Repay Loan
Interest And Principle.
Answer: True
Rationale: While Both Shareholders And Bankers Are Interested In All The Information Company’s
Provide, Shareholders Care About More About A Company’s Profitability And Bankers Care More
About Solvency And Creditworthiness.
Topic: Publicly Available Financial
Reports Lo: 1
2. Publicly Traded Companies Are Required To Provide Quarterly Financial Reports Directly To The Public.
Answer: False
Rationale: Companies Provide Electronic Versions Of Quarterly Financial Statements To The Sec
That Posts Them To The Internet For The Public To Access Them.
Topic: Users Of Financial Statement Information
Lo: 1
3. Publicly Traded Companies Provide Financial Information Primarily To Satisfy The Sec And
The Tax Authorities (That Is, The Internal Revenue Service).
Answer: False
Rationale: Demand For Information Extends To Many Users, The Regulators Such As The Sec And
The Irs Are Only One Class Of Users.
Topic: Sec Filings
Lo: 1
4. Publicly Traded Companies Must Provide To The Securities Exchange Commission Annual
Audited Financial Statements (10k Reports) And Quarterly Audited Financial Statements (10q
Reports).
Answer: False
Rationale: Quarterly Reports Do Not Need To Be Audited.
Topic: Balance Sheet
Lo: 2
5. If A Company Reports Retained Earnings Of $175.3 Million On Its Balance Sheet, It Must Also Report
$175.3 Million In Cash.
Answer: False
Rationale: The Accounting Equation Requires Total Assets To Equal Total Liabilities Plus
Stockholders’ Equity. That Does Not Imply, However, That Liability And Equity Accounts Relate
Directly To Specific Assets.
