, E! odule1 E!
Financial Accounting for BAs E! E! E!E!
Learning Objectives – Coverage by question E! E! E! E! E!
True/False E! ultiple Choice
E!
LO1 – E!
Explain and assess the four ain business activities.
E! E! E! E! E! E!E! E! E!
LO2 – E!
1- 4
E! 1, 2
E!
Identify and discuss the users and suppliers of finan
E! E! E! E! E! E! E! E! E!
cial state ent infor ation.
E! E! E! E!
LO3 – E!
5-10 3-19
Describe and exa ine the four financial state ents, a
E! E! E! E! E! E! E! E! E! E!
nd define the accounting equation.
E! E! E! E!
LO4 – E!
11-13 20-25
Explain and apply the basics of profitability analysis.
E! E! E! E! E! E! E! E!
LO5 – E!
14 26, 27
E!
Assess business operations within the context of a c
E! E! E! E! E! E! E! E! E!
o petitive environ ent.
E! E! E!
LO6 – E!
Access reports filed with the SEC (Appendix 1A).
E! E! E! E! E! E! E! E!
LO7 – E!
Describe the accounting principles and regulations t
E! E! E! E! E! E! E! 15 28-30
hat fra e financial state ents (Appendix 1B).
E! E! E! E! E! E! E!
These questions are available to assign in yBusinessCourse.
E! E! E! E! E! E! E!E!
,E! odule 1: Financial Accounting for BAs
E! E! E! E! E!E!
True/False
Topic: Users of Financial State ent Infor ation LO:
E! E! E! E! E! E! E! E!
2
E!
1. Shareholders de and financial infor ation pri arily to assess profitability and risk whereas bankers d
E ! E! E! E! E! E! E! E! E! E! E! E! E! E! E !
e and infor ation pri arily to assess cash flows to repay loan interest and principal.
E! E! E! E! E! E! E! E! E! E! E! E! E! E! E!
Answer: True E!
Rationale: While both shareholders and bankers are interested in all the infor ation co panies provi
E! E! E! E! E! E! E! E! E! E! E! E! E! E! E!
de, shareholders care about ore about a co pany’s profitability and bankers care ore about solve
E! E! E! E!E! E! E! E! E! E! E! E! E! E!E! E! E!
ncy and creditworthiness.
E! E!
Topic: Publicly Available Financial Reports
E! E! E! E!
LO: 2
E! E!
2. Publicly traded co panies are required to provide quarterly financial reports directly to the public.
E! E! E! E! E! E! E! E! E! E! E! E! E! E!
Answer: False E!
Rationale: Co panies provide electronic versions of quarterly financial state ents to the SEC, which
E! E! E! E! E! E! E! E! E! E! E! E! E! E! E !
posts the to the Internet for the public to access the .
E! E!E! E! E! E! E! E! E! E! E! E!
Topic: Users of Financial State ent Infor ation LO:
E! E! E! E! E! E! E! E!
2
E!
3. Publicly traded co panies provide financial infor ation pri arily to satisfy the SEC and the tax authorities
E! E! E! E! E! E! E! E! E! E! E! E! E! E! E! E! E! E!
(that is, the Internal Revenue Service).
E! E! E! E! E!
Answer: False E!
Rationale: De and for infor ation extends to any users; the regulators such as the SEC and the IR
E! E! E! E! E! E! E! E!E! E! E! E! E! E! E! E! E! E! E!
S are only one class of users.
E! E! E! E! E! E!
Topic: SEC Filing E! E!
s LO: 2
E! E!
4. Publicly traded co panies ust provide to the Securities Exchange Co ission annual audited financial
E! E! E! E!E! E! E! E! E! E! E! E!E! E! E! E! E!
state ents (10-K reports) and quarterly audited financial state ents (10-Q reports).
E! E! E! E! E! E! E! E! E! E! E!
Answer: False E!
Rationale: Quarterly reports do not need to be audited.
E! E! E! E! E! E! E! E!
Topic: Balance Shee E! E!
t LO: 3
E! E!
5. If a co pany reports retained earnings of $175.3 illion on its balance sheet, it ust also report $175.3
E! E! E! E! E! E! E! E! E!E! E! E! E! E! E! E!E! E! E! E!
illion in cash.
E!E! E! E!
Answer: False E!
, Rationale: The accounting equation requires total assets to equal total liabilities plus stockhold
E! E! E! E! E! E! E! E! E! E! E! E!
ers’ equity. That does not i ply, however, that liability and equity accounts relate directly to specific asse
E! E! E! E! E! E! E! E! E! E! E! E! E! E! E! E! E!
ts.
Financial Accounting for BAs E! E! E!E!
Learning Objectives – Coverage by question E! E! E! E! E!
True/False E! ultiple Choice
E!
LO1 – E!
Explain and assess the four ain business activities.
E! E! E! E! E! E!E! E! E!
LO2 – E!
1- 4
E! 1, 2
E!
Identify and discuss the users and suppliers of finan
E! E! E! E! E! E! E! E! E!
cial state ent infor ation.
E! E! E! E!
LO3 – E!
5-10 3-19
Describe and exa ine the four financial state ents, a
E! E! E! E! E! E! E! E! E! E!
nd define the accounting equation.
E! E! E! E!
LO4 – E!
11-13 20-25
Explain and apply the basics of profitability analysis.
E! E! E! E! E! E! E! E!
LO5 – E!
14 26, 27
E!
Assess business operations within the context of a c
E! E! E! E! E! E! E! E! E!
o petitive environ ent.
E! E! E!
LO6 – E!
Access reports filed with the SEC (Appendix 1A).
E! E! E! E! E! E! E! E!
LO7 – E!
Describe the accounting principles and regulations t
E! E! E! E! E! E! E! 15 28-30
hat fra e financial state ents (Appendix 1B).
E! E! E! E! E! E! E!
These questions are available to assign in yBusinessCourse.
E! E! E! E! E! E! E!E!
,E! odule 1: Financial Accounting for BAs
E! E! E! E! E!E!
True/False
Topic: Users of Financial State ent Infor ation LO:
E! E! E! E! E! E! E! E!
2
E!
1. Shareholders de and financial infor ation pri arily to assess profitability and risk whereas bankers d
E ! E! E! E! E! E! E! E! E! E! E! E! E! E! E !
e and infor ation pri arily to assess cash flows to repay loan interest and principal.
E! E! E! E! E! E! E! E! E! E! E! E! E! E! E!
Answer: True E!
Rationale: While both shareholders and bankers are interested in all the infor ation co panies provi
E! E! E! E! E! E! E! E! E! E! E! E! E! E! E!
de, shareholders care about ore about a co pany’s profitability and bankers care ore about solve
E! E! E! E!E! E! E! E! E! E! E! E! E! E!E! E! E!
ncy and creditworthiness.
E! E!
Topic: Publicly Available Financial Reports
E! E! E! E!
LO: 2
E! E!
2. Publicly traded co panies are required to provide quarterly financial reports directly to the public.
E! E! E! E! E! E! E! E! E! E! E! E! E! E!
Answer: False E!
Rationale: Co panies provide electronic versions of quarterly financial state ents to the SEC, which
E! E! E! E! E! E! E! E! E! E! E! E! E! E! E !
posts the to the Internet for the public to access the .
E! E!E! E! E! E! E! E! E! E! E! E!
Topic: Users of Financial State ent Infor ation LO:
E! E! E! E! E! E! E! E!
2
E!
3. Publicly traded co panies provide financial infor ation pri arily to satisfy the SEC and the tax authorities
E! E! E! E! E! E! E! E! E! E! E! E! E! E! E! E! E! E!
(that is, the Internal Revenue Service).
E! E! E! E! E!
Answer: False E!
Rationale: De and for infor ation extends to any users; the regulators such as the SEC and the IR
E! E! E! E! E! E! E! E!E! E! E! E! E! E! E! E! E! E! E!
S are only one class of users.
E! E! E! E! E! E!
Topic: SEC Filing E! E!
s LO: 2
E! E!
4. Publicly traded co panies ust provide to the Securities Exchange Co ission annual audited financial
E! E! E! E!E! E! E! E! E! E! E! E!E! E! E! E! E!
state ents (10-K reports) and quarterly audited financial state ents (10-Q reports).
E! E! E! E! E! E! E! E! E! E! E!
Answer: False E!
Rationale: Quarterly reports do not need to be audited.
E! E! E! E! E! E! E! E!
Topic: Balance Shee E! E!
t LO: 3
E! E!
5. If a co pany reports retained earnings of $175.3 illion on its balance sheet, it ust also report $175.3
E! E! E! E! E! E! E! E! E!E! E! E! E! E! E! E!E! E! E! E!
illion in cash.
E!E! E! E!
Answer: False E!
, Rationale: The accounting equation requires total assets to equal total liabilities plus stockhold
E! E! E! E! E! E! E! E! E! E! E! E!
ers’ equity. That does not i ply, however, that liability and equity accounts relate directly to specific asse
E! E! E! E! E! E! E! E! E! E! E! E! E! E! E! E! E!
ts.
