ACC 1O1/102/202
ACC/FIN/110.
Accounting
CPA 2026/2027 BUSINESS
, Accounting Exam questions
with correct answers
2026/2027 Edition Graded A+
Assets - ✅✅Things company owns & uses to generate revenue
Liabilities - ✅✅Amount that company owes
Equity - ✅✅Amount invested in company by owners; owners claim
no assets
Accounting equation - ✅✅Assets = liabilities + equity
Truism in business - ✅✅Company never receives greater than it
gives & never gives greater than it receives
4 Rules of debits & credits - ✅✅1. Debit amount received; credit
amount given up
2. Debuts on left; credits on the right
3. In each transactions; list debits first (good) & credits last (bad)
, 4. Total debits = total credits
Making an ethical decision - ✅✅1. Identify ethical concerns- use
personal ethics to recognize concern
2. Analyze options- consider all good & bad consequences
3. Make ethical decision- choose best option given circumstances
Fraud - ✅✅Intentional manipulation- focus on prevention. Once
fraud is committed, loses are rarely retrieved.
Fraud Triangle - ✅✅Opportunity (low risk of being caught),
Financial Pressure (incentive), Rationalization (making situation
justifiable)
GAAP (generally accepted accounting principles) - ✅✅Financial
accounting is governed by concepts & rules.
1. Relevant info affects decision of user
2. Reliable info trusted by users
3. Comparable info aids in contrasting organizations
SEC- Securities and Exchange Commission - ✅✅Federal agency
congress has charged to set reporting rules for org that sell ownership
shares to public
ACC/FIN/110.
Accounting
CPA 2026/2027 BUSINESS
, Accounting Exam questions
with correct answers
2026/2027 Edition Graded A+
Assets - ✅✅Things company owns & uses to generate revenue
Liabilities - ✅✅Amount that company owes
Equity - ✅✅Amount invested in company by owners; owners claim
no assets
Accounting equation - ✅✅Assets = liabilities + equity
Truism in business - ✅✅Company never receives greater than it
gives & never gives greater than it receives
4 Rules of debits & credits - ✅✅1. Debit amount received; credit
amount given up
2. Debuts on left; credits on the right
3. In each transactions; list debits first (good) & credits last (bad)
, 4. Total debits = total credits
Making an ethical decision - ✅✅1. Identify ethical concerns- use
personal ethics to recognize concern
2. Analyze options- consider all good & bad consequences
3. Make ethical decision- choose best option given circumstances
Fraud - ✅✅Intentional manipulation- focus on prevention. Once
fraud is committed, loses are rarely retrieved.
Fraud Triangle - ✅✅Opportunity (low risk of being caught),
Financial Pressure (incentive), Rationalization (making situation
justifiable)
GAAP (generally accepted accounting principles) - ✅✅Financial
accounting is governed by concepts & rules.
1. Relevant info affects decision of user
2. Reliable info trusted by users
3. Comparable info aids in contrasting organizations
SEC- Securities and Exchange Commission - ✅✅Federal agency
congress has charged to set reporting rules for org that sell ownership
shares to public
