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

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, X odule1 X




Financial Accounting for BAs X X XX




Learning Objectives – Coverage by question X X X X X



True/False ultiple Choice
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LO1 – X


Explain and assess the four ain business activities.
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LO2 – X
1- 4
X 1, 2
X
Identify and discuss the users and suppliers of financi
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al state ent infor ation.
X x X x




LO3 – X
5-10 3-19
Describe and exa ine the four financial state ents, and
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define the accounting equation.
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LO4 – X
11-13 20-25
Explain and apply the basics of profitability analysis.
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LO5 – X
14 26, 27
X
Assess business operations within the context of a co
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petitive environ ent.
X x




LO6 – X


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


Describe the accounting principles and regulations th
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at fra e financial state ents (Appendix 1B).
X x X X x X X




These questions are available to assign in yBusinessCourse.
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, odule 1: Financial Accounting for BAs
X X X X X XX




True/False


Topic: Users of Financial State ent Infor ation LO: 2
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1. Shareholders de and financial infor ation pri arily to assess profitability and risk whereas bankers de an
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d infor ation pri arily to assess cash flows to repay loan interest and principal.
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Answer: True X


Rationale: While both shareholders and bankers are interested in all the infor ation co panies provide,
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shareholders care about ore about a co pany‘s profitability and bankers care ore about solvency and
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creditworthiness.


Topic: Publicly Available Financial Reports
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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 X


Rationale: Co panies provide electronic versions of quarterly financial state ents to the SEC, which post
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s the to the Internet for the public to access the .
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Topic: Users of Financial State ent Infor ation LO: 2
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3. Publicly traded co panies provide financial infor ation pri arily to satisfy the SEC and the tax authorities (that
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Xis, the Internal Revenue Service).
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Answer: False X


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


Rationale: Quarterly reports do not need to be audited.
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Topic: Balance Sheet
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LO: 3
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5. If a co pany reports retained earnings of $175.3 illion on its balance sheet, it ust also report $175.3 illion
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Xin cash.
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Answer: False X