MBA MFT PRACTICE EXAM 2026
QUESTIONS AND ANSWERS
CERTIFICATION EVALUATION SET
●● An unqualified auditors' opinion about an entity's financial
statements:
a) states that they are presented in conformance with U.S. generally
accepted accounting principles.
b) is a clean bill of health.
c) means that all of the entity's transactions during the audited period
were checked out.
d) guarantees that the entity was not involved in or the victim of any
fraudulent activities during the audited period..
Answer: a) states that they are presented in conformance with U.S.
generally accepted accounting principles.
●● Over the years, the Securities and Exchange Commission (SEC) has
delegated its statutory authority to establish accounting principles for
publicly traded companies in the United States to each of the following
organizations except the:
a) Accounting Principles Board (APB).
b) Financial Accounting Standards Board (FASB).
c) Committee on Accounting Procedures of the American Institute of
Accountants.
,d) None of the above organizations were ever delegated authority by the
SEC to establish accounting principles in the U.S.
e) Each of the organizations listed in A, B, and C were at one time or
another delegated authority by the SEC to establish accounting
principles in the U.S..
Answer: e) Each of the organizations listed in A, B, and C were at one
time or another delegated authority by the SEC to establish accounting
principles in the U.S.
●● The authoritative financial accounting standards-setting body in the
United States is presently the:
a) Securities and Exchange Commission (SEC)
b) Accounting Principles Board (APB)
c) Financial Accounting Standards Board (FASB)
d) International Accounting Standards Board (IASB)
e) Public Company Accounting Oversights Board (PCAOB).
Answer: c) Financial Accounting Standards Board (FASB)
●● The ethical concept of integrity means that an individual must:
a) attempt to be honest and forthright in dealings and communications
with others.
b) report to a supervisor any violation of the code of conduct of her
company that is observed.
c) sign a pledge to abide by all laws and regulations.
,d) read, understand, and agree to follow all provisions of her employer's
code of conduct..
Answer: a) attempt to be honest and forthright in dealings and
communications with others.
●● Which classification of accounting is most concerned with the use of
economic and financial information to plan and control many of the
activities of the entity?
a) Income tax accounting.
b) Auditing-Public accounting.
c) Managerial accounting.
d) Financial accounting..
Answer: c) Managerial accounting.
●● Which of the following are qualified to express an auditor's opinion
about an entity's financial statements?
a) A Certified Internal Auditor.
b) A Comptroller.
c) A Certified Management Accountant.
d) A Certified Public Accountant.
e) None of the above..
Answer: d) A Certified Public Accountant.
, ●● Which of the following is an objective of financial reporting by
business enterprises?
a) Financial reporting should provide assurance that all liabilities of
business enterprises will be paid.
b) Financial reporting should provide information about the economic
resources of an enterprise, the claims to those resources, and changes in
those resources and claims to them.
c) The primary focus of financial reporting is information about the
assets of the entity.
d) Financial reporting should show the timing and amount of future cash
dividends to potential investors..
Answer: b) Financial reporting should provide information about the
economic resources of an enterprise, the claims to those resources, and
changes in those resources and claims to them.
●● Which of the following statements about the Financial Accounting
Standards Board is correct?
a) The FASB has the authority to fine a noncompliant firm.
b) The FASB follows a due process procedure that permits input from
interested parties before a standard is issued.
c) The FASB is an agency of the Federal government.
d) The FASB is controlled by the American Institute of CPA's.
e) None of the above statements is correct.
Answer: b) The FASB follows a due process procedure that permits
input from interested parties before a standard is issued.
QUESTIONS AND ANSWERS
CERTIFICATION EVALUATION SET
●● An unqualified auditors' opinion about an entity's financial
statements:
a) states that they are presented in conformance with U.S. generally
accepted accounting principles.
b) is a clean bill of health.
c) means that all of the entity's transactions during the audited period
were checked out.
d) guarantees that the entity was not involved in or the victim of any
fraudulent activities during the audited period..
Answer: a) states that they are presented in conformance with U.S.
generally accepted accounting principles.
●● Over the years, the Securities and Exchange Commission (SEC) has
delegated its statutory authority to establish accounting principles for
publicly traded companies in the United States to each of the following
organizations except the:
a) Accounting Principles Board (APB).
b) Financial Accounting Standards Board (FASB).
c) Committee on Accounting Procedures of the American Institute of
Accountants.
,d) None of the above organizations were ever delegated authority by the
SEC to establish accounting principles in the U.S.
e) Each of the organizations listed in A, B, and C were at one time or
another delegated authority by the SEC to establish accounting
principles in the U.S..
Answer: e) Each of the organizations listed in A, B, and C were at one
time or another delegated authority by the SEC to establish accounting
principles in the U.S.
●● The authoritative financial accounting standards-setting body in the
United States is presently the:
a) Securities and Exchange Commission (SEC)
b) Accounting Principles Board (APB)
c) Financial Accounting Standards Board (FASB)
d) International Accounting Standards Board (IASB)
e) Public Company Accounting Oversights Board (PCAOB).
Answer: c) Financial Accounting Standards Board (FASB)
●● The ethical concept of integrity means that an individual must:
a) attempt to be honest and forthright in dealings and communications
with others.
b) report to a supervisor any violation of the code of conduct of her
company that is observed.
c) sign a pledge to abide by all laws and regulations.
,d) read, understand, and agree to follow all provisions of her employer's
code of conduct..
Answer: a) attempt to be honest and forthright in dealings and
communications with others.
●● Which classification of accounting is most concerned with the use of
economic and financial information to plan and control many of the
activities of the entity?
a) Income tax accounting.
b) Auditing-Public accounting.
c) Managerial accounting.
d) Financial accounting..
Answer: c) Managerial accounting.
●● Which of the following are qualified to express an auditor's opinion
about an entity's financial statements?
a) A Certified Internal Auditor.
b) A Comptroller.
c) A Certified Management Accountant.
d) A Certified Public Accountant.
e) None of the above..
Answer: d) A Certified Public Accountant.
, ●● Which of the following is an objective of financial reporting by
business enterprises?
a) Financial reporting should provide assurance that all liabilities of
business enterprises will be paid.
b) Financial reporting should provide information about the economic
resources of an enterprise, the claims to those resources, and changes in
those resources and claims to them.
c) The primary focus of financial reporting is information about the
assets of the entity.
d) Financial reporting should show the timing and amount of future cash
dividends to potential investors..
Answer: b) Financial reporting should provide information about the
economic resources of an enterprise, the claims to those resources, and
changes in those resources and claims to them.
●● Which of the following statements about the Financial Accounting
Standards Board is correct?
a) The FASB has the authority to fine a noncompliant firm.
b) The FASB follows a due process procedure that permits input from
interested parties before a standard is issued.
c) The FASB is an agency of the Federal government.
d) The FASB is controlled by the American Institute of CPA's.
e) None of the above statements is correct.
Answer: b) The FASB follows a due process procedure that permits
input from interested parties before a standard is issued.
