FINANCIAL ACCOUNTING FOR MBAS 8TH EDITION
COMPLETE TEST BANK FOR
FINANCIAL ACCOUNTING FOR MBAS 8TH EDITION BY PETER D. EASTON JOHN J.
WILD ||LATEST EDITION WITH VERIFIED ACCURATE ANSWERS TO ALL
MODULES.GRADE A+
8TH EDITION
, FINANCIAL ACCOUNTING FOR MBAS 8TH EDITION
Module 1
Financial Accounting For Mbas
Learning Objectives – Coverage By Question
True/False Multiple Choice
Lo1 – Explain And Assess The Four Main Business
Activities.
Lo2 – Identify And Discuss The Users And Suppliers
1- 4 1, 2
Of Financial Statement Information.
Lo3 – Describe And Examine The Four Financial
5-10 3-19
Statements, And Define The Accounting Equation.
Lo4 – Explain And Apply The Basics Of Profitability
11-13 20-25
Analysis.
Lo5 – Assess Business Operations Within The
14 26, 27
Context Of A Competitive Environment.
Lo6 – Access Reports Filed With The Sec (Appendix
1a).
Lo7 – Describe The Accounting Principles And
Regulations That Frame Financial Statements 15 28-30
(Appendix 1b).
These Questions Are Available To Assign In My Business Course.
Topic: Users Of Financial Statement Information Lo: 2
, FINANCIAL ACCOUNTING FOR MBAS 8TH EDITION
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 Principal.
Accurate Ans>>: True
Rationale: While Both Shareholders And Bankers Are Interested In All The Information Companies
Provide, Shareholders Care About More About A Company’s Profitability And Bankers Care More About
Solvency And Creditworthiness.
Topic: Publicly Available Financial Reports Lo: 2
2. Publicly Traded Companies Are Required To Provide Quarterly Financial Reports Directly To The
Public.
Accurate Ans>>: False
Rationale: Companies Provide Electronic Versions Of Quarterly Financial Statements To The Sec, Which
Posts Them To The Internet For The Public To Access Them.
Topic: Users Of Financial Statement Information Lo: 2
3. Publicly Traded Companies Provide Financial Information Primarily To Satisfy The Sec And The
Tax Authorities (That Is, The Internal Revenue Service).
Accurate Ans>>: 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: 2
4. Publicly Traded Companies Must Provide To The Securities Exchange Commission Annual
Audited Financial Statements (10-K Reports) And Quarterly Audited Financial Statements (10-Q Reports).
Accurate Ans>>: False
, FINANCIAL ACCOUNTING FOR MBAS 8TH EDITION
Rationale: Quarterly Reports Do Not Need To Be Audited.
Topic: Balance Sheet Lo: 3
5. If A Company Reports Retained Earnings Of $175.3 Million On Its Balance Sheet, It Must Also
Report
$175.3 Million In Cash.
Accurate Ans>>: 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.
Topic: Balance Sheet Lo: 3
6. A Balance Sheet Shows A Company’s Position Over A Period Of Time, Whereas An Income
Statement, Statement Of Stockholders’ Equity, And Statement Of Cash Flows Show Its Position At A
Point In Time.
Accurate Ans>>: False
Rationale: The Statement Is Reversed: A Balance Sheet Shows A Company’s Position At A Point In Time,
Whereas An Income Statement, Statement Of Equity, And Statement Of Cash Flows Show Its Position
Over A Period Of Time.
Topic: Accounting Equation Lo: 3
7. Assets Must Always Equal Liabilities Plus Equity.
Accurate Ans>>: True
Rationale: The Accounting Equation Is Assets = Liabilities + Equity. This Relation Must Always Hold.
Topic: Income Statement Lo: 3
8. The Income Statement Reports Net Income Which Is Defined As The Company’s Profit After All
Expenses And Dividends Have Been Paid.
Accurate Ans>>: False
COMPLETE TEST BANK FOR
FINANCIAL ACCOUNTING FOR MBAS 8TH EDITION BY PETER D. EASTON JOHN J.
WILD ||LATEST EDITION WITH VERIFIED ACCURATE ANSWERS TO ALL
MODULES.GRADE A+
8TH EDITION
, FINANCIAL ACCOUNTING FOR MBAS 8TH EDITION
Module 1
Financial Accounting For Mbas
Learning Objectives – Coverage By Question
True/False Multiple Choice
Lo1 – Explain And Assess The Four Main Business
Activities.
Lo2 – Identify And Discuss The Users And Suppliers
1- 4 1, 2
Of Financial Statement Information.
Lo3 – Describe And Examine The Four Financial
5-10 3-19
Statements, And Define The Accounting Equation.
Lo4 – Explain And Apply The Basics Of Profitability
11-13 20-25
Analysis.
Lo5 – Assess Business Operations Within The
14 26, 27
Context Of A Competitive Environment.
Lo6 – Access Reports Filed With The Sec (Appendix
1a).
Lo7 – Describe The Accounting Principles And
Regulations That Frame Financial Statements 15 28-30
(Appendix 1b).
These Questions Are Available To Assign In My Business Course.
Topic: Users Of Financial Statement Information Lo: 2
, FINANCIAL ACCOUNTING FOR MBAS 8TH EDITION
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 Principal.
Accurate Ans>>: True
Rationale: While Both Shareholders And Bankers Are Interested In All The Information Companies
Provide, Shareholders Care About More About A Company’s Profitability And Bankers Care More About
Solvency And Creditworthiness.
Topic: Publicly Available Financial Reports Lo: 2
2. Publicly Traded Companies Are Required To Provide Quarterly Financial Reports Directly To The
Public.
Accurate Ans>>: False
Rationale: Companies Provide Electronic Versions Of Quarterly Financial Statements To The Sec, Which
Posts Them To The Internet For The Public To Access Them.
Topic: Users Of Financial Statement Information Lo: 2
3. Publicly Traded Companies Provide Financial Information Primarily To Satisfy The Sec And The
Tax Authorities (That Is, The Internal Revenue Service).
Accurate Ans>>: 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: 2
4. Publicly Traded Companies Must Provide To The Securities Exchange Commission Annual
Audited Financial Statements (10-K Reports) And Quarterly Audited Financial Statements (10-Q Reports).
Accurate Ans>>: False
, FINANCIAL ACCOUNTING FOR MBAS 8TH EDITION
Rationale: Quarterly Reports Do Not Need To Be Audited.
Topic: Balance Sheet Lo: 3
5. If A Company Reports Retained Earnings Of $175.3 Million On Its Balance Sheet, It Must Also
Report
$175.3 Million In Cash.
Accurate Ans>>: 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.
Topic: Balance Sheet Lo: 3
6. A Balance Sheet Shows A Company’s Position Over A Period Of Time, Whereas An Income
Statement, Statement Of Stockholders’ Equity, And Statement Of Cash Flows Show Its Position At A
Point In Time.
Accurate Ans>>: False
Rationale: The Statement Is Reversed: A Balance Sheet Shows A Company’s Position At A Point In Time,
Whereas An Income Statement, Statement Of Equity, And Statement Of Cash Flows Show Its Position
Over A Period Of Time.
Topic: Accounting Equation Lo: 3
7. Assets Must Always Equal Liabilities Plus Equity.
Accurate Ans>>: True
Rationale: The Accounting Equation Is Assets = Liabilities + Equity. This Relation Must Always Hold.
Topic: Income Statement Lo: 3
8. The Income Statement Reports Net Income Which Is Defined As The Company’s Profit After All
Expenses And Dividends Have Been Paid.
Accurate Ans>>: False
