TEST BANK for Financial Accounting for MBAs 8th Edition by Peter Easton & John Wild contains verified questions and answers graded A+

TEST BANK FOR FINANCIAL ACCOUNTING FOR
ll ll ll ll ll



MBAS 8TH EDITION BY EASTON
ll ll ll ll ll

, Module 1 ll




FinancialAccountingforMBAs l l l




Learning Objs – Coverage by question
ll ll l ll l


True/False Multiple llChoice


LO1 ll– llExplain lland llassess llthe llfour llmain llbusiness
llactivities.




LO2 ll– llIdentify lland lldiscuss llthe llusers lland
1- ll4 1, ll2
llsuppliers llof ll financial ll statement ll information.




LO3 ll– lDescribe lland llexamine llthe llfour llfinancial
5-10 3-19
llstatements, lland lldefine llthe llaccounting llequation.




LO4 ll– llExplain lland llapply llthe llbasics llof
11-13 20-25
llprofitability llanalysis.




LO5 ll– llAssess llbusiness lloperations llwithin llthe
14 26, ll27
llcontext llof ll a ll competitive ll environment.




LO6 ll– llAccess llreports llfiled llwith llthe llSEC ll(Appendix
ll1A).




LO7 ll– lDescribe llthe llaccounting llprinciples lland
llregulations llthat llframe llfinancial llstatements 15 28-30
ll(Appendix ll1B).




These llquestions llare llavailable llto llassign llin llmyBusinessCourse.




© llCambridge llBusiness llPublishers, ll2021
1-1 Financial llAccounting llfor llMBAs, ll8th llEdition

,Module 1: Financial Accounting for MBAs
ll ll ll ll ll




True/False


TOPIC:Users llof llFinancial llStatement llInformation llLO:
2
1. Shareholders lldemand llfinancial llinformation llprimarily llto llassess llprofitability lland llrisk llwhereas
llbankers lldemand llinformation llprimarily llto llassess llcash llflows llto llrepay llloan llinterest lland

llprincipal.



ACCURATE llANSWER:-True
Reasoning:->>->>>While llboth llshareholders lland llbankers llare llinterested llin llall llthe llinformation
llcompanies llprovide, llshareholders llcare llabout llmore llabout lla llfirm’s llprofitability lland llbankers

llcare llmore llabout llsolvency lland llcreditworthiness.




TOPIC:Publicly llAvailable llFinancial
llReports llLO: ll2

2. Publicly lltraded llcompanies llare llrequired llto llprovide llquarterly llfinancial llreports lldirectly llto llthe llpublic.

ACCURATE llANSWER:-False
Reasoning:->>->>>Companies llprovide llelectronic llversions llof llquarterly llfinancial llstatements llto
llthe llSEC, llwhich llposts llthem llto llthe llInternet llfor llthe llpublic llto llaccess llthem.




TOPIC:Users llof llFinancial llStatement llInformation llLO:
2
3. Publicly l l traded l l companies l l provide l l financial l l information l l primarily l l to ll satisfy
l l the l l SEC l l and l l the l l tax llauthorities ll(that llis, llthe llInternal llRevenue llService).



ACCURATE llANSWER:-False
Reasoning ll:->>->>>Demand llfor llinformation llextends llto llmany llusers; llthe llregulators llsuch llas llthe
llSEC lland llthe llIRS llare llonly llone llclass llof llusers.




TOPIC:SEC llFilings llLO:
2
4. Publicly l l traded l l companies l l must l l provide l l to l l the l l Securities l l Exchange
l l Commission l l annual l l audited llfinancial llstatements ll(10-K llreports) lland llquarterly llaudited

llfinancial llstatements ll(10-Q llreports).



ACCURATE llANSWER:-False
Reasoning:->>->>>Quarterly llreports lldo llnot llneed llto llbe llaudited.


TOPIC:Balance
llSheet llLO: ll3

5. If l l a l l firm l l reports l l retained l l earnings ll of ll $175.3 l l million ll on l l its ll balance l l sheet, ll it l l must
l l also l l report

$175.3 llmillion llin llcash.

ACCURATE llANSWER:-False
Reasoning:->>->>>The llaccounting llequation llrequires lltotal llassets llto llequal lltotal llliabilities llplus
llstockholders’ llequity. llThat lldoes llnot llimply, llhowever, llthat llliability lland llequity llaccounts llrelate

lldirectly llto llspecific llassets.

, © llCambridge llBusiness llPublishers, ll2021
Test llBank ll(T/F ll& llMC), llModule ll1 1-2