,
, Module 1 d
Financial Accounting for MBAsd d d
Learning Objectives – Coverage by question
d d d d d
True/False Multiple dChoice
LO1 d– dExplain dand dassess dthe dfour dmain dbusiness
activities.
d
LO2 d– dIdentify dand ddiscuss dthe dusers dand dsuppliers
1- d4 1, d2
dofd
financial dstatement dinformation.
LO3 d– dDescribe dand dexamine dthe dfour dfinancial
5-10 3-19
dstatements, dand ddefine dthe daccounting dequation.
LO4 d– dExplain dand dapply dthe dbasics dof dprofitability
11-13 20-25
analysis.
d
LO5 d– dAssess dbusiness doperations dwithin dthe
14 26, d27
dcontextd
of da dcompetitive denvironment.
LO6 d– dAccess dreports dfiled dwith dthe dSEC d(Appendix
1A).
d
LO7 d– dDescribe dthe daccounting dprinciples dand
dregulations dthat dframe dfinancial dstatements 15 28-30
d(Appendixd1B).
These dquestions dare davailable dto dassign din dmyBusinessCourse.
, Module 1: Financial Accounting for MBAs
d d d d d
True/False
Topic: dUsers dof dFinancial dStatement dInformation
LO: d2
d
1. Shareholders d demand d financial d information d primarily d to d assess d profitability d and d risk d whereas
d bankers ddemand dinformation dprimarily dto dassess dcash dflows dto drepay dloan dinterest dand dprincipal.
Answer: dTrue
Rationale: dWhile dboth dshareholders dand dbankers dare dinterested din dall dthe dinformation dcompanies
dprovide, dshareholders dcare dabout dmore dabout da dcompany‘s dprofitability dand dbankers dcare dmore
dabout dsolvency dand dcreditworthiness.
Topic: dPublicly dAvailable dFinancial
dReportsdLO: d2
2. Publicly dtraded dcompanies dare drequired dto dprovide dquarterly dfinancial dreports ddirectly dto dthe dpublic.
Answer: dFalse
Rationale: d Companies d provide d electronic d versions d of d quarterly d financial d statements d to d the d SEC,
d which dposts dthem dto dthe dInternet dfor dthe dpublic dto daccess dthem.
Topic: dUsers dof dFinancial dStatement dInformation
LO: d2
d
3. Publicly dtraded dcompanies dprovide dfinancial dinformation dprimarily dto dsatisfy dthe dSEC dand dthe dtax
dauthorities d(that dis, dthe dInternal dRevenue dService).
Answer: dFalse
Rationale: dDemand dfor dinformation dextends dto dmany dusers; dthe dregulators dsuch das dthe dSEC d and
dthe dIRSd
are donly done dclass dof dusers.
Topic: dSEC
dFilingsd LO: d2
4. Publicly dtraded dcompanies dmust dprovide dto dthe dSecurities dExchange dCommission dannual daudited
dfinanciald
statements d(10-K dreports) dand dquarterly daudited dfinancial dstatements d(10-Q dreports).
Answer: dFalse
Rationale: dQuarterly dreports ddo dnot dneed dto dbe daudited.
Topic: dBalance
dSheetd LO: d3
5. If da dcompany dreports dretained dearnings dof d$175.3 dmillion don dits dbalance dsheet, dit dmust dalso dreport
d$175.3 dmillion din dcash.
Answer: dFalse
, Module 1 d
Financial Accounting for MBAsd d d
Learning Objectives – Coverage by question
d d d d d
True/False Multiple dChoice
LO1 d– dExplain dand dassess dthe dfour dmain dbusiness
activities.
d
LO2 d– dIdentify dand ddiscuss dthe dusers dand dsuppliers
1- d4 1, d2
dofd
financial dstatement dinformation.
LO3 d– dDescribe dand dexamine dthe dfour dfinancial
5-10 3-19
dstatements, dand ddefine dthe daccounting dequation.
LO4 d– dExplain dand dapply dthe dbasics dof dprofitability
11-13 20-25
analysis.
d
LO5 d– dAssess dbusiness doperations dwithin dthe
14 26, d27
dcontextd
of da dcompetitive denvironment.
LO6 d– dAccess dreports dfiled dwith dthe dSEC d(Appendix
1A).
d
LO7 d– dDescribe dthe daccounting dprinciples dand
dregulations dthat dframe dfinancial dstatements 15 28-30
d(Appendixd1B).
These dquestions dare davailable dto dassign din dmyBusinessCourse.
, Module 1: Financial Accounting for MBAs
d d d d d
True/False
Topic: dUsers dof dFinancial dStatement dInformation
LO: d2
d
1. Shareholders d demand d financial d information d primarily d to d assess d profitability d and d risk d whereas
d bankers ddemand dinformation dprimarily dto dassess dcash dflows dto drepay dloan dinterest dand dprincipal.
Answer: dTrue
Rationale: dWhile dboth dshareholders dand dbankers dare dinterested din dall dthe dinformation dcompanies
dprovide, dshareholders dcare dabout dmore dabout da dcompany‘s dprofitability dand dbankers dcare dmore
dabout dsolvency dand dcreditworthiness.
Topic: dPublicly dAvailable dFinancial
dReportsdLO: d2
2. Publicly dtraded dcompanies dare drequired dto dprovide dquarterly dfinancial dreports ddirectly dto dthe dpublic.
Answer: dFalse
Rationale: d Companies d provide d electronic d versions d of d quarterly d financial d statements d to d the d SEC,
d which dposts dthem dto dthe dInternet dfor dthe dpublic dto daccess dthem.
Topic: dUsers dof dFinancial dStatement dInformation
LO: d2
d
3. Publicly dtraded dcompanies dprovide dfinancial dinformation dprimarily dto dsatisfy dthe dSEC dand dthe dtax
dauthorities d(that dis, dthe dInternal dRevenue dService).
Answer: dFalse
Rationale: dDemand dfor dinformation dextends dto dmany dusers; dthe dregulators dsuch das dthe dSEC d and
dthe dIRSd
are donly done dclass dof dusers.
Topic: dSEC
dFilingsd LO: d2
4. Publicly dtraded dcompanies dmust dprovide dto dthe dSecurities dExchange dCommission dannual daudited
dfinanciald
statements d(10-K dreports) dand dquarterly daudited dfinancial dstatements d(10-Q dreports).
Answer: dFalse
Rationale: dQuarterly dreports ddo dnot dneed dto dbe daudited.
Topic: dBalance
dSheetd LO: d3
5. If da dcompany dreports dretained dearnings dof d$175.3 dmillion don dits dbalance dsheet, dit dmust dalso dreport
d$175.3 dmillion din dcash.
Answer: dFalse
