A
,
, 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 Mybusinesscourse.
© Cambridge Business Publishers, 2021
1-1 Financial Accounting For Mbas, 8th Edition
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Module 1: Financial Accounting for MBAs
True/False
Topic: Users Of Financial Statement Information
Lo: 2
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.
CORRECT 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.
CORRECT 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).
CORRECT 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).
CORRECT ANS:False
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.
CORRECT 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.
1-2
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,
, 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 Mybusinesscourse.
© Cambridge Business Publishers, 2021
1-1 Financial Accounting For Mbas, 8th Edition
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
Module 1: Financial Accounting for MBAs
True/False
Topic: Users Of Financial Statement Information
Lo: 2
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.
CORRECT 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.
CORRECT 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).
CORRECT 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).
CORRECT ANS:False
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.
CORRECT 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.
1-2
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