MBA 510 TEST 1 EXAM QUESTIONS AND
ANSWERS. VERIFIED 2026.
Accounting - ANS Information and measurement systems that identifies, records, and
communicated relevant information about a companies business activities.
recordkeeping/bookkeeping - ANS the recording of transactions and events.
Financial accounting - ANS focuses on the needs of external users
managerial accounting - ANS focuses on the needs of internal users
External Users - ANS do not directly run the organization and have limited access to its
accounting information
External Users examples - ANS lenders, shareholders, governments, consumer groups,
external auditors, customers
Internal Users - ANS directly manage and operate the organization
Internal Users examples - ANS Purchasing managers, production manager,
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, distribution manager,
marketing managers,
service managers,'
research and development managers.
Ethics - ANS Beliefs that separate right from wrong
Three key steps to ethical decision - ANS 1. Identify ethical concerns
2. Analyze options
3. Make ethical decision
What three factors push a person to commit fraud - ANS Opportunity, Pressure,
Rationalization
Sarbanes-Oxley Act or SOX - ANS Requires documentation and verification of internal
controls and emphasizes effective internal controls.
Auditors - ANS verify the effectiveness of internal controls
Dodd-Frank Act - ANS 1. Clawback Mandates recovery of excessive pay.
2. Whistleblower SEC pays whistleblowers 10% to 30% of sanctions exceeding 1 million
Generally accepted accounting principles (GAAP) - ANS a set of accounting standards that is
used in the preparation of financial statements
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS. VERIFIED 2026.
Accounting - ANS Information and measurement systems that identifies, records, and
communicated relevant information about a companies business activities.
recordkeeping/bookkeeping - ANS the recording of transactions and events.
Financial accounting - ANS focuses on the needs of external users
managerial accounting - ANS focuses on the needs of internal users
External Users - ANS do not directly run the organization and have limited access to its
accounting information
External Users examples - ANS lenders, shareholders, governments, consumer groups,
external auditors, customers
Internal Users - ANS directly manage and operate the organization
Internal Users examples - ANS Purchasing managers, production manager,
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, distribution manager,
marketing managers,
service managers,'
research and development managers.
Ethics - ANS Beliefs that separate right from wrong
Three key steps to ethical decision - ANS 1. Identify ethical concerns
2. Analyze options
3. Make ethical decision
What three factors push a person to commit fraud - ANS Opportunity, Pressure,
Rationalization
Sarbanes-Oxley Act or SOX - ANS Requires documentation and verification of internal
controls and emphasizes effective internal controls.
Auditors - ANS verify the effectiveness of internal controls
Dodd-Frank Act - ANS 1. Clawback Mandates recovery of excessive pay.
2. Whistleblower SEC pays whistleblowers 10% to 30% of sanctions exceeding 1 million
Generally accepted accounting principles (GAAP) - ANS a set of accounting standards that is
used in the preparation of financial statements
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
