Financial Accounting – MBA Prep Works Final Exam | Verified Questions & Correct Detailed Answers | Latest A+ Grade | 2025/2026 Edition

Financial Accounting-MBA Prep Works Final
questions and answers 2025\2026 A+ Grade

False
- correct answer A non-profit organization such as a school does not prepare reports for external users
(true or false)



False
- correct answer The SEC is the rule-making body for generally accepted accounting principles (true or
false)



False
- correct answer The annual report is a good example of tax accounting



True
- correct answer Owners in corporations are liable only for the amount they have invested and no more
(true or false)



AAA
- correct answer Academic accountants are members of which of the following associations:

a. FASB

b. AAA

c. CASB

d. SEC

e. none



external users
- correct answer Financial accounting involves reporting financial information to___ ____

, False
- correct answer A company's annual report is used primarily by the taxing authorities (true or false)



None of the above
- correct answer the quality that assumes that information is reasonably free from error is:

a. relevant

b. conservatism

c. understandability

d. consistency

e. none of the above



Matching
- correct answer Elson Incorporated estimated the useful life of a patent and amortized it over its useful
life. This GAAP is known as ____



managerial accounting
- correct answer preparing a production plan would be an example of _____ _____



Securities and Exchange Commission
- correct answer power to regulate the form and content of financial reports of publicly-traded
companies



Financial Accounting Standards Board
- correct answer The primary accounting standard-setting body in the United States. authoritative voice
of accounting principles



Generally Accepted Accounting Principles
- correct answer GAAP



GAAP
- correct answer the collection of accounting standards and conventions that has evolved over the years
to govern the profession of accounting