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+

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, Module 1 M




Financial Accounting for BAs mn mn mnmn




Learning Objectives – Coverage by question mn mn mn mn mn



True/False ultiple Choice
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LO1 – mn


Explain and assess the four
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es.

LO2 – mn
1- 4
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Identify and discuss the users and suppliers of fi
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nancial state ent infor ation.
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LO3 – mn
5-10 3-19
Describe and exa ine the four financial state ent
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s, and define the accounting equation.
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LO4 – mn
11-13 20-25
Explain and apply the basics of profitability analy
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sis.

LO5 – mn
14 26, 27
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Assess business operations within the context of
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a co petitive environ ent.
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LO6 – mn


Access reports filed with the SEC (Appendix 1A).
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LO7 – mn


Describe the accounting principles and regulation
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s that fra e financial state ents (Appendix 1B).
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These questions are available to assign in
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, Module 1: Financial Accounting for MBAs
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True/False


Topic: Users of Financial State ent Infor ation
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LO: 2 mn


1. Shareholders de and financial infor ation pri arily to assess profitability and risk whereas bank
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ers de and infor ation pri arily to assess cash flows to repay loan interest and principal.
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Answer: True mn


Rationale: While both shareholders and bankers are interested in all the infor ation co panies
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provide, shareholders care about ore about a co pany‘s profitability and bankers care ore
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about solvency and creditworthiness.
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Topic: Publicly Available Financial Repor
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ts LO: 2
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2. Publicly traded co panies are required to provide quarterly financial reports directly to the public.
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Answer: False mn


Rationale: Co panies provide electronic versions of quarterly financial state ents to the SEC, w
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hich posts the to the Internet for the public to access the .
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Topic: Users of Financial State ent Infor ation
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LO: 2 mn


3. Publicly traded co panies provide financial infor ation pri arily to satisfy the SEC and the tax auth
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orities (that is, the Internal Revenue Service).
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Answer: False mn


Rationale: De and for infor ation extends to
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the IRS are only one class of users.
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Topic: SEC Filing
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s LO: 2
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4. Publicly traded co panies ust provide to the Securities Exchange Co ission annual audited fina
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ncial state ents (10-K reports) and quarterly audited financial state ents (10-Q reports).
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Answer: False mn


Rationale: Quarterly reports do not need to be audited.
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Topic: Balance She
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et LO: 3
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5. If a co pany reports retained earnings of $175.3
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mn mn mn mn mn mnmn ust also report
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$175.3 illion in cash.
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Answer: False mn