TEST BANK FOR FINANCIAL &
MANAGERIAL ACCOUNTING FOR MBAS,
6TH EDITION BY EASTON, HALSEY,
MCANALLY, HARTGRAVES & MORSE
2025/2026 A+
1
,TABLE OF CONTENTS
1. FInancial Accounting for MBAs
2. Introducing Financial Statements and Transaction Analysis
3. Accounting Adjustments and Constructing Financial
Statements
4. Analyzing and Interpreting Financial Statements
5. Reporting and Analyzing Operating Income
6. Reporting and Analyzing Operating Assets and Analyzing
Nonowner Financing and Analyzing Owner Financing
7. Reporting and Analyzing Intercorporate Investments
8. Reporting and Analyzing Off-Balance-Sheet Financing
9. Forecasting Financial Statements
10. Analyzing and Valuing Equity Securities
11. Managerial Accounting for MBAs
12. Cost Behavior, Activity Analysis, and Cost Estimation
13. Cost-Volume-Profit Analysis and Planning
14. Relevant Costs and Benefits for Decision Making
15. Product Costing: Job and Process Operations
16. Activity-Based Costing, Customer Profitability, and
Activity-Based Management
17. Additional Topics in Product Costing
18. Pricing and Other Product Management Decisions
19. Operational Budgeting and Profit Planning
20. Standard Costs and Performance Reports
21. Segment Reporting, Transfer Pricing, and Balanced
Scorecard
22. Capital Budgeting Decisions
23. Compound Interest Tables
Cambridge Business Publishers, ©2018
1-2 Financial & M anagerial Accounting for M BAs, 5th Edition
, Financial & Managerial Accounting For Mbas, 6TH EDITION
By Easton, Halsey, Mcanally, Hartgraves & Morse
Practice Quiz Solutions
Module 1 + Financial Accounting For Mbas
1. Which Of The Following Organizations Does Not Contribute To The Formation Of GAAP?
a. FASB (Financial Accounting Standards Board)
b. IRS (Internal Revenue Service)
c. AICPA (American Institute Of Certified Public Accountants)
d. SEC (Securities And Exchange
Commission) ANS: B
2. Rocky Beach Reports The Following Dollar Balances In Its Retained Earnings Account.
($ Millions) 2017 2016
Retained Earnings…………. 8,968.1 8,223.9
During 2017, Rocky Beach Reported Net Income Of $1,351.4 Million. What Amount Of Dividends,
If Any, Did Rocky Beach Pay To Its Shareholders In 2017?
a. $607.2 Million
b. No Dividends Paid
c. $301.2 Million
d. $744.2
Million ANS: A
Computation Of Dividends
Beginning Retained Earnings, 2017 ............................................................................ $8,223.9
+ Net Income ................................................................................................................. 1,351.4
+ Cash Dividends........................................................................................................... (?)
= Ending Retained Earnings, 2017 ................................................................................. $8,968.1
Thus, Dividends Were $607.2 Million For 2017.
3
, 3. At The Beginning Of A Recent Year, The Walt Disney Company’s Liabilities Equaled $26,197
Million. During The Year, Assets Increased By $400 Million And Year-End Assets Equaled
$50,388 Million. Liabilities Decreased $100 Million During The Year.
What Were Beginning And Ending Amounts For Walt Disney’s Equity?
a. $26,197 Million Beginning Equity And $24,291 Million Ending Equity
b. $23,791 Million Beginning Equity And $27,042 Million Ending Equity
c. $23,791 Million Beginning Equity And $24,291 Million Ending Equity
d. $27,042 Million Beginning Equity And $25,183 Million Ending
Equity ANS: C
Using The Accounting Equation At The Beginning Of The Year:
Assets($50,388 - $400) = Liabilities($26,197) + Equity(?)
Thus: Beginning Equity = $23,791
Using The Accounting Equation At The End Of The Year:
Assets($50,388) = Liabilities($26,197 - $100) + Equity(?)
Thus: Ending Equity = $24,291
4. Assume That Starbucks Reported Net Income For A Recent Year Of $564 Million. Its
Stockholders’ Equity Is $2,229 Million And $2,090 Million, Respectively.
Compute Its Return On Equity.
a. 13.0%
b. 22.8%
c. 26.1%
d. 32.7%
ANS: C
ROE = Net Income / Average Stockholders’ Equity
= $564 Million / [($2,229 Million + $2,090 Million) / 2] = 26.1%
5. Nokia Manufactures, Markets, And Sells Phones And Other Electronics. Assume That Nokia
Reported Net Income Of €3,582 On Sales Of €34,191 And Total Stockholders’ Equity Of €14,576
And €14,871, Respectively.
What Is Nokia’s Return On Equity?
a. 24.3%
b. 42.3%
c. 17.7%
Cambridge Business Publishers, ©2018
1-4 Financial & M anagerial Accounting for M BAs, 5th Edition
MANAGERIAL ACCOUNTING FOR MBAS,
6TH EDITION BY EASTON, HALSEY,
MCANALLY, HARTGRAVES & MORSE
2025/2026 A+
1
,TABLE OF CONTENTS
1. FInancial Accounting for MBAs
2. Introducing Financial Statements and Transaction Analysis
3. Accounting Adjustments and Constructing Financial
Statements
4. Analyzing and Interpreting Financial Statements
5. Reporting and Analyzing Operating Income
6. Reporting and Analyzing Operating Assets and Analyzing
Nonowner Financing and Analyzing Owner Financing
7. Reporting and Analyzing Intercorporate Investments
8. Reporting and Analyzing Off-Balance-Sheet Financing
9. Forecasting Financial Statements
10. Analyzing and Valuing Equity Securities
11. Managerial Accounting for MBAs
12. Cost Behavior, Activity Analysis, and Cost Estimation
13. Cost-Volume-Profit Analysis and Planning
14. Relevant Costs and Benefits for Decision Making
15. Product Costing: Job and Process Operations
16. Activity-Based Costing, Customer Profitability, and
Activity-Based Management
17. Additional Topics in Product Costing
18. Pricing and Other Product Management Decisions
19. Operational Budgeting and Profit Planning
20. Standard Costs and Performance Reports
21. Segment Reporting, Transfer Pricing, and Balanced
Scorecard
22. Capital Budgeting Decisions
23. Compound Interest Tables
Cambridge Business Publishers, ©2018
1-2 Financial & M anagerial Accounting for M BAs, 5th Edition
, Financial & Managerial Accounting For Mbas, 6TH EDITION
By Easton, Halsey, Mcanally, Hartgraves & Morse
Practice Quiz Solutions
Module 1 + Financial Accounting For Mbas
1. Which Of The Following Organizations Does Not Contribute To The Formation Of GAAP?
a. FASB (Financial Accounting Standards Board)
b. IRS (Internal Revenue Service)
c. AICPA (American Institute Of Certified Public Accountants)
d. SEC (Securities And Exchange
Commission) ANS: B
2. Rocky Beach Reports The Following Dollar Balances In Its Retained Earnings Account.
($ Millions) 2017 2016
Retained Earnings…………. 8,968.1 8,223.9
During 2017, Rocky Beach Reported Net Income Of $1,351.4 Million. What Amount Of Dividends,
If Any, Did Rocky Beach Pay To Its Shareholders In 2017?
a. $607.2 Million
b. No Dividends Paid
c. $301.2 Million
d. $744.2
Million ANS: A
Computation Of Dividends
Beginning Retained Earnings, 2017 ............................................................................ $8,223.9
+ Net Income ................................................................................................................. 1,351.4
+ Cash Dividends........................................................................................................... (?)
= Ending Retained Earnings, 2017 ................................................................................. $8,968.1
Thus, Dividends Were $607.2 Million For 2017.
3
, 3. At The Beginning Of A Recent Year, The Walt Disney Company’s Liabilities Equaled $26,197
Million. During The Year, Assets Increased By $400 Million And Year-End Assets Equaled
$50,388 Million. Liabilities Decreased $100 Million During The Year.
What Were Beginning And Ending Amounts For Walt Disney’s Equity?
a. $26,197 Million Beginning Equity And $24,291 Million Ending Equity
b. $23,791 Million Beginning Equity And $27,042 Million Ending Equity
c. $23,791 Million Beginning Equity And $24,291 Million Ending Equity
d. $27,042 Million Beginning Equity And $25,183 Million Ending
Equity ANS: C
Using The Accounting Equation At The Beginning Of The Year:
Assets($50,388 - $400) = Liabilities($26,197) + Equity(?)
Thus: Beginning Equity = $23,791
Using The Accounting Equation At The End Of The Year:
Assets($50,388) = Liabilities($26,197 - $100) + Equity(?)
Thus: Ending Equity = $24,291
4. Assume That Starbucks Reported Net Income For A Recent Year Of $564 Million. Its
Stockholders’ Equity Is $2,229 Million And $2,090 Million, Respectively.
Compute Its Return On Equity.
a. 13.0%
b. 22.8%
c. 26.1%
d. 32.7%
ANS: C
ROE = Net Income / Average Stockholders’ Equity
= $564 Million / [($2,229 Million + $2,090 Million) / 2] = 26.1%
5. Nokia Manufactures, Markets, And Sells Phones And Other Electronics. Assume That Nokia
Reported Net Income Of €3,582 On Sales Of €34,191 And Total Stockholders’ Equity Of €14,576
And €14,871, Respectively.
What Is Nokia’s Return On Equity?
a. 24.3%
b. 42.3%
c. 17.7%
Cambridge Business Publishers, ©2018
1-4 Financial & M anagerial Accounting for M BAs, 5th Edition
