LSUS MBA 700 MODULE 1 EXAM
STUDY GUIDE 2025/2026
COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<BRAND NEW VERSION>
1. Accounting - ANSWER ✓ set of concepts and techniques that are used to
measure and report financial information about an economic unit
2. Financial Accounting - ANSWER ✓ external report of information to parties
outside the firm
3. Managerial Accounting - ANSWER ✓ providing information for internal
management
4. Fundamental Accounting Equation - ANSWER ✓ Assets = Liabilities +
Owner's Equity
5. Assets - ANSWER ✓ economic resources of the entity, and include items
like cash, accounts receivable (amounts owed to a firm by its customers),
inventories, land, buildings, equipment, and even intangible assets (patents,
legal rights, claims)
,6. Liabilities - ANSWER ✓ amounts owed to others relating to loans,
extensions of credit and other obligations arising
7. Owners' Equity - ANSWER ✓ the owner's "interest" in the business [net
assets]. Common Stock + Retained Earnings
8. Sole Proprietorship - ANSWER ✓ A business owned by one person, and its
equity would typically consist of a single owner's capital account
9. partnership - ANSWER ✓ business owned by more than one person, with its
equity consisting of a separate account for each partner
10.corporation - ANSWER ✓ ownership interest being represented by divisible
units of ownership called shares of stock
11.Financial Reporting - ANSWER ✓ refers to the process of providing
financial information to external users; reports the company's revenues and
expenses over an interval of time
12.Revenues > Expenses - ANSWER ✓ = net income
13.Revenues < Expenses - ANSWER ✓ = net loss
14.Auditors - ANSWER ✓ Trained individuals hired by a company as an
independent party to express a professional opinion of the extent to which
financial statements are prepared in compliance with GAAP and are free of
material misstatement
15.Reasons for incorrect financial statements - ANSWER ✓ errors and fraud
16.Errors - ANSWER ✓ accidental errors in recording transactions or applying
accounting rules
17.fraud - ANSWER ✓ person intentionally deceives another person for
personal gain or to damage that person
,18.occupational fraud - ANSWER ✓ use of one's occupation for personal
enrichment through the deliberate misuse or misapplication of the
employer's resources
19.Examples of Accounting Fraud - ANSWER ✓ Enron and WorldCom
20.Sarbanes-Oxley Act of 2002 - ANSWER ✓ Public Company Accounting
Reform and Investor Protection Act of 2002; applies to all companies that
are required to file financial statements with the SEC
21.Fraud Triangle consists of? - ANSWER ✓ Opportunity, Motivation, &
Rationalization
22.Fraud Triangle: Opportunity - ANSWER ✓ the situation allows the fraud to
occur
23.fraud triangle: Motivation - ANSWER ✓ someone feels the need to commit
fraud, such as the need for money
24.Fraud Triangle: Rationalization - ANSWER ✓ justification for the deceptive
act by the one committing the fraud
25.internal controls - ANSWER ✓ attempt to eliminate the opportunity element
of fraud
26.Components of Internal Control - ANSWER ✓ methods for collection of
relevant information and communication in a timely manner, enabling
people to carry out their responsibilities
27.Asset account examples - ANSWER ✓ cash, supplies, equipment
28.Liability account examples - ANSWER ✓ Accounts Payable, Salaries
Payable, Utilities Payable, and Taxes Payable
29.Revenue - ANSWER ✓ the "top line" amount corresponding to the total
benefits generated from business activity; turnover, inflows and
enhancements from delivery of goods and services
, 30.Income - ANSWER ✓ the "bottom line" amount that results after deducting
the expenses from review
31.balance sheet - ANSWER ✓ reveals the assets, liabilities, and equity of a
company; prepared as of a specific date
32.income statement - ANSWER ✓ summary of an entity's results of operation
for a specified period of time
33.statement of retained earnings - ANSWER ✓ reduced by dividends paid to
shareholders; covers a period of time
34.statement of cash flow - ANSWER ✓ reveals how cash is generated and
expended during a specific period of time; consisting of operating, investing,
and financing activities
35.Which of the following is the correct order of preparing the financial
statements?
A. income statement, statement of owner's equity, balance sheet,
statement of cash flows.
B. income statement, statement of cash flows, balance sheet, statement of
owner's equity.
C. income statement, balance sheet, statement of cash flows, statement of
owner's equity.
D. income statement, balance sheet, statement of owner's equity,
statement of cash flows. - ANSWER ✓ income statement, statement
of owner's equity, balance sheet, statement of cash flows
36.Which of the following is the principle that a business must report any
business activities that could affect what is reported on the financial
statements?
A. expense of recognition (matching principle)
B. cost principle
C. full disclosure principle
D. revenue recognition principle - ANSWER ✓ Full disclosure principle
STUDY GUIDE 2025/2026
COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<BRAND NEW VERSION>
1. Accounting - ANSWER ✓ set of concepts and techniques that are used to
measure and report financial information about an economic unit
2. Financial Accounting - ANSWER ✓ external report of information to parties
outside the firm
3. Managerial Accounting - ANSWER ✓ providing information for internal
management
4. Fundamental Accounting Equation - ANSWER ✓ Assets = Liabilities +
Owner's Equity
5. Assets - ANSWER ✓ economic resources of the entity, and include items
like cash, accounts receivable (amounts owed to a firm by its customers),
inventories, land, buildings, equipment, and even intangible assets (patents,
legal rights, claims)
,6. Liabilities - ANSWER ✓ amounts owed to others relating to loans,
extensions of credit and other obligations arising
7. Owners' Equity - ANSWER ✓ the owner's "interest" in the business [net
assets]. Common Stock + Retained Earnings
8. Sole Proprietorship - ANSWER ✓ A business owned by one person, and its
equity would typically consist of a single owner's capital account
9. partnership - ANSWER ✓ business owned by more than one person, with its
equity consisting of a separate account for each partner
10.corporation - ANSWER ✓ ownership interest being represented by divisible
units of ownership called shares of stock
11.Financial Reporting - ANSWER ✓ refers to the process of providing
financial information to external users; reports the company's revenues and
expenses over an interval of time
12.Revenues > Expenses - ANSWER ✓ = net income
13.Revenues < Expenses - ANSWER ✓ = net loss
14.Auditors - ANSWER ✓ Trained individuals hired by a company as an
independent party to express a professional opinion of the extent to which
financial statements are prepared in compliance with GAAP and are free of
material misstatement
15.Reasons for incorrect financial statements - ANSWER ✓ errors and fraud
16.Errors - ANSWER ✓ accidental errors in recording transactions or applying
accounting rules
17.fraud - ANSWER ✓ person intentionally deceives another person for
personal gain or to damage that person
,18.occupational fraud - ANSWER ✓ use of one's occupation for personal
enrichment through the deliberate misuse or misapplication of the
employer's resources
19.Examples of Accounting Fraud - ANSWER ✓ Enron and WorldCom
20.Sarbanes-Oxley Act of 2002 - ANSWER ✓ Public Company Accounting
Reform and Investor Protection Act of 2002; applies to all companies that
are required to file financial statements with the SEC
21.Fraud Triangle consists of? - ANSWER ✓ Opportunity, Motivation, &
Rationalization
22.Fraud Triangle: Opportunity - ANSWER ✓ the situation allows the fraud to
occur
23.fraud triangle: Motivation - ANSWER ✓ someone feels the need to commit
fraud, such as the need for money
24.Fraud Triangle: Rationalization - ANSWER ✓ justification for the deceptive
act by the one committing the fraud
25.internal controls - ANSWER ✓ attempt to eliminate the opportunity element
of fraud
26.Components of Internal Control - ANSWER ✓ methods for collection of
relevant information and communication in a timely manner, enabling
people to carry out their responsibilities
27.Asset account examples - ANSWER ✓ cash, supplies, equipment
28.Liability account examples - ANSWER ✓ Accounts Payable, Salaries
Payable, Utilities Payable, and Taxes Payable
29.Revenue - ANSWER ✓ the "top line" amount corresponding to the total
benefits generated from business activity; turnover, inflows and
enhancements from delivery of goods and services
, 30.Income - ANSWER ✓ the "bottom line" amount that results after deducting
the expenses from review
31.balance sheet - ANSWER ✓ reveals the assets, liabilities, and equity of a
company; prepared as of a specific date
32.income statement - ANSWER ✓ summary of an entity's results of operation
for a specified period of time
33.statement of retained earnings - ANSWER ✓ reduced by dividends paid to
shareholders; covers a period of time
34.statement of cash flow - ANSWER ✓ reveals how cash is generated and
expended during a specific period of time; consisting of operating, investing,
and financing activities
35.Which of the following is the correct order of preparing the financial
statements?
A. income statement, statement of owner's equity, balance sheet,
statement of cash flows.
B. income statement, statement of cash flows, balance sheet, statement of
owner's equity.
C. income statement, balance sheet, statement of cash flows, statement of
owner's equity.
D. income statement, balance sheet, statement of owner's equity,
statement of cash flows. - ANSWER ✓ income statement, statement
of owner's equity, balance sheet, statement of cash flows
36.Which of the following is the principle that a business must report any
business activities that could affect what is reported on the financial
statements?
A. expense of recognition (matching principle)
B. cost principle
C. full disclosure principle
D. revenue recognition principle - ANSWER ✓ Full disclosure principle
