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
n n n n n



MBAS 8TH EDITION BY EASTON
n n n n n

, Module 1 n




Financial Accounting for MBAs n n n




Learning Objs – Coverage by question
n n n n n


True/False Multiple nChoice


LO1 n– nExplain nand nassess nthe nfour nmain nbusiness
nactivities.




LO2 n– nIdentify nand ndiscuss nthe nusers nand
1- n4 1, n2
nsuppliers nof nfinancial n statement n information.




LO3 n– nDescribe nand nexamine nthe nfour nfinancial
5-10 3-19
nstatements, nand ndefine nthe naccounting nequation.




LO4 n– nExplain nand napply nthe nbasics nof
11-13 20-25
nprofitability nanalysis.




LO5 n– nAssess nbusiness noperations nwithin nthe
14 26, n27
ncontext nof n a n competitive n environment.




LO6 n– nAccess nreports nfiled nwith nthe nSEC
n(Appendix n1A).




LO7 n– nDescribe nthe naccounting nprinciples nand
nregulations nthat nframe nfinancial nstatements 15 28-30
n(Appendix n1B).




These nquestions nare navailable nto nassign nin nmyBusinessCourse.




© nCambridge nBusiness nPublishers, n2021
1-1 Financial nAccounting nfor nMBAs, n8th nEdition

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




True/False


TOPIC:Users nof nFinancial nStatement nInformation nLO:
2
1. Shareholders ndemand nfinancial ninformation nprimarily nto nassess nprofitability nand nrisk nwhereas
nbankers ndemand ninformation nprimarily nto nassess ncash nflows nto nrepay nloan ninterest nand

nprincipal.



ACCURATE nANSWER:-True
Reasoning:->>->>>While nboth nshareholders nand nbankers nare ninterested nin nall nthe ninformation
ncompanies nprovide, nshareholders ncare nabout nmore nabout na nfirm’s nprofitability nand nbankers

ncare nmore nabout nsolvency nand ncreditworthiness.




TOPIC:Publicly nAvailable nFinancial
nReports nLO: n2

2. Publicly ntraded ncompanies nare nrequired nto nprovide nquarterly nfinancial nreports ndirectly nto nthe npublic.

ACCURATE nANSWER:-False
Reasoning:->>->>>Companies nprovide nelectronic nversions nof nquarterly nfinancial nstatements nto
nthe nSEC, nwhich nposts nthem nto nthe nInternet nfor nthe npublic nto naccess nthem.




TOPIC:Users nof nFinancial nStatement nInformation nLO:
2
3. Publicly n traded n companies n provide n financial n information n primarily n to n satisfy n the
n SEC n and n the n tax nauthorities n(that nis, nthe nInternal nRevenue nService).



ACCURATE nANSWER:-False
Reasoning n:->>->>>Demand nfor ninformation nextends nto nmany nusers; nthe nregulators nsuch nas nthe
nSEC nand nthe nIRS nare nonly none nclass nof nusers.




TOPIC:SEC nFilings nLO:
2
4. Publicly n traded n companies n must n provide n to n the n Securities n Exchange n Commission
n annual n audited nfinancial nstatements n(10-K nreports) nand nquarterly naudited nfinancial

nstatements n(10-Q nreports).



ACCURATE nANSWER:-False
Reasoning:->>->>>Quarterly nreports ndo nnot nneed nto nbe naudited.


TOPIC:Balance
nSheet nLO: n3

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

$175.3 nmillion nin ncash.

ACCURATE nANSWER:-False
Reasoning:->>->>>The naccounting nequation nrequires ntotal nassets nto nequal ntotal nliabilities nplus
nstockholders’ nequity. nThat ndoes nnot nimply, nhowever, nthat nliability nand nequity naccounts nrelate

ndirectly nto nspecific nassets.

, © nCambridge nBusiness nPublishers, n2021
Test nBank n(T/F n& nMC), nModule n1 1-2