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
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
