Sample Questions and Answers
What is the primary purpose of professional research in accounting?
A) To improve financial reporting accuracy
B) To analyze market trends for investment decisions
C) To enhance customer relationship management
D) To increase marketing efficiency
Answer: A
Which of the following is a key source for authoritative accounting research?
A) SEC Filings
B) FASB Codification
C) Stock Market Reports
D) Company Press Releases
Answer: B
The Sarbanes-Oxley Act of 2002 primarily aims to:
A) Improve corporate governance and financial disclosures
B) Reduce tax rates for corporations
C) Simplify accounting standards
D) Eliminate the use of external auditors
Answer: A
What is the role of the PCAOB in accounting research?
A) Regulate the stock market
B) Oversee the audits of public companies
C) Establish tax laws
D) Manage corporate mergers
Answer: B
Which of the following databases is widely used for accounting research?
A) LexisNexis
B) Bloomberg
C) FASB Accounting Standards Codification
D) Reuters
Answer: C
In accounting research, a “primary source” refers to:
A) A textbook on financial accounting
B) An SEC regulation or FASB standard
C) An online financial blog
D) A company’s press release
Answer: B
Which of the following is an essential skill for professional accounting research?
A) Ability to code software programs
B) Knowledge of tax fraud techniques
C) Analytical thinking and problem-solving
D) Persuasive writing for marketing campaigns
Answer: C
The AICPA Code of Professional Conduct is useful in research for:
A) Identifying legal loopholes
B) Ensuring ethical accounting practices
C) Avoiding taxes
D) Maximizing profits
Answer: B
Which section of the FASB Codification deals with revenue recognition?
A) ASC 606
B) ASC 842
C) ASC 320
D) ASC 450
Answer: A
GAAP is primarily established by:
A) Internal Revenue Service (IRS)
B) Financial Accounting Standards Board (FASB)
C) Securities and Exchange Commission (SEC)
D) Public Company Accounting Oversight Board (PCAOB)
Answer: B
What is the primary purpose of an accountant conducting research on an accounting issue?
A) To justify a predetermined conclusion
B) To find the best available guidance and apply it appropriately
C) To avoid responsibility for financial reporting errors
D) To manipulate financial statements for profit maximization
Answer: B
Which of the following best describes “materiality” in accounting research?
A) The cost of producing financial reports
B) The influence of financial information on decision-making
C) The volume of financial transactions recorded
D) The complexity of an accounting rule
Answer: B
Which of the following is an authoritative source for auditing research?
A) Generally Accepted Accounting Principles (GAAP)
B) International Financial Reporting Standards (IFRS)
C) Public Company Accounting Oversight Board (PCAOB) Auditing Standards
D) Internal Revenue Service (IRS) Code
Answer: C
The Securities and Exchange Commission (SEC) requires publicly traded companies to submit which financial reports?
A) Form 10-K and Form 10-Q
B) Bank statements
C) Press releases
D) Internal budget reports
Answer: A
When conducting accounting research, which of the following should be used to determine the most reliable source?
A) The most recent blog post
B) The most widely shared social media post
C) Official accounting standards and regulatory sources
D) The opinion of a financial analyst
Answer: C
What is the primary goal of forensic accounting research?
A) To identify and prevent fraudulent activities
B) To enhance financial statement presentation
C) To maximize tax deductions
D) To improve customer relations
Answer: A
Which of the following represents a key ethical consideration in accounting research?
A) Confidentiality
B) Aggressive tax avoidance
C) Creative accounting practices
D) Profit maximization
Answer: A
Which of the following is an example of an accounting policy that may require professional research?
A) Cash flow forecasting methods
B) Capitalization of research and development costs
C) Office decoration expenses
D) Employee parking policies
Answer: B
In accounting research, the term “comparability” refers to:
A) The ability to compare financial information across companies and time periods
B) The ease of accessing financial reports
C) The use of a single accounting software
D) The similarity of tax rates between companies
Answer: A
What is the main purpose of the International Financial Reporting Standards (IFRS)?
A) To regulate only U.S. companies
B) To create a global standard for financial reporting
C) To increase corporate taxation
D) To eliminate financial audits
Answer: B
The process of reviewing financial statements to ensure compliance with accounting standards is called:
A) Auditing
B) Tax planning
C) Budgeting
D) Marketing analysis
Answer: A
Which type of research is conducted to determine whether an accounting treatment is allowed under GAAP?
A) Descriptive research
B) Regulatory research
C) Market research
D) Experimental research
Answer: B
Which of the following would be the most appropriate first step in conducting accounting research?
A) Searching for information on social media
B) Reviewing relevant authoritative literature
C) Asking a colleague for an opinion
D) Making an assumption based on experience
Answer: B
What is a key advantage of using the FASB Codification for research?
A) It provides a single, authoritative source for accounting guidance
B) It simplifies tax filing processes
C) It eliminates the need for financial audits
D) It provides investment recommendations
Answer: A
Which of the following best describes “substance over form” in accounting?
A) Transactions should be recorded based on their economic reality rather than their legal form
B) Companies should prioritize the format of financial statements over accuracy
C) Legal documents always determine accounting treatment
D) The physical appearance of financial reports matters most
Answer: A
Which of the following best describes professional skepticism in accounting research?
A) A mindset that questions assumptions and requires evidence
B) Trusting all management assertions without verification
C) Rejecting all accounting standards
D) Assuming financial statements are always incorrect
Answer: A
Which of the following bodies oversees the IFRS?
A) The International Accounting Standards Board (IASB)
B) The SEC
C) The IRS
D) The PCAOB
Answer: A
The concept of “fair value” in accounting research refers to:
A) The price that would be received in an orderly transaction between market participants
B) The lowest possible tax liability
C) The original cost of an asset
D) The amount of depreciation recorded
Answer: A
What is an important factor in determining the credibility of an accounting research source?
A) Whether it is from an authoritative standard-setting body
B) The number of shares it has on social media
C) The popularity of the author
D) Whether it aligns with company goals
Answer: A
The term “timeliness” in financial reporting refers to:
A) Providing financial information promptly to users
B) Predicting future stock prices
C) Adjusting tax rates for businesses
D) Delaying financial reports for strategic reasons
Answer: A
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