Accounting 102 Combo + 1
Other 2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,D. All of the above require accounting information. 1. Which of the following entities would not require accounting information
pertaining to their economic activities?
A. Social clubs.
B. Not-for-profit entities.
C. State governments.
D. All of the above require accounting information.
E. None of the above requires accounting information.
B. To measure the current market value of the business 2. Which of the following is not an objective of financial reporting described in FASB
enterprise. Concepts Statement No. 1?
A. To provide information about how management of an enterprise has discharged
its stewardship responsibility to owners.
B. To measure the current market value of the business enterprise.
C. To provide information so potential investors or creditors can make their own
predictions of future earnings.
D. To focus primarily on information about earnings and its components.
E. All of the above are objectives of financial reporting.
C. The FASB follows a due process procedure that permits 3. Which of the following statements about the Financial Accounting Standards
input from interested parties before a standard is issued. Board is correct?
A. The FASB is an agency of the Federal government.
B. The FASB has the authority to fine a noncompliant firm.
C. The FASB follows a due process procedure that permits input from interested
parties before a standard is issued.
D. The FASB is controlled by the American Institute of CPA's.
E. None of the above statements is correct.
C. financial accounting, national accounting, cost 4. Major classifications of accounting activity would not include:
accounting. A. financial accounting, internal auditing, public accounting.
B. internal auditing, governmental accounting, managerial accounting.
C. financial accounting, national accounting, cost accounting.
D. auditing, income tax accounting, governmental accounting.
B. Probability of success of a new product development. 5. Which of the following is not an example of a decision or informed judgment that
a potential investor would make from accounting information?
A. Future profitability based on past profitability.
B. Probability of success of a new product development.
C. A forecast of dividends.
D. Assessment of risk that a company may have more debt than it can repay if the
economy enters a recession.
A. Personnel turnover statistics (i.e., hiring and 6. Which of the following is not an example of a decision or informed judgment that
terminations). a potential employee could make from accounting information?
A. Personnel turnover statistics (i.e., hiring and terminations).
B. Probability of the company's ability to make profit sharing plan contributions in
the future.
C. Assessment of the risk that the company may become bankrupt in the near
future.
D. The extent of the company's commitment to a research program.
D. A Certified Public Accountant. 7. Which of the following is qualified to express an auditor's opinion about an entity's
financial statements?
A. A Comptroller.
B. A Certified Management Accountant.
C. A Certified Internal Auditor.
D. A Certified Public Accountant.
E. None of the above.
C. Managerial accounting. 8. Which classification of accounting is most concerned with the use of economic
and financial information to plan and control many of the activities of the entity?
A. Financial accounting.
B. Auditing-Public accounting.
C. Managerial accounting.
D. Income tax accounting.
, D. states that they are presented in conformance with 9. An unqualified auditors' opinion about an entity's financial statements:
generally accepted accounting principles. A. is a clean bill of health.
B. means that all of the entity's transactions during the audited period were checked
out.
C. guarantees that the entity was not involved in or the victim of any fraudulent
activities during the audited period.
D. states that they are presented in conformance with generally accepted
accounting principles.
D. Managerial accounting. 10. Cost accounting is a subset of which of the following?
A. Internal auditing.
B. Public auditing.
C. Cost analysis.
D. Managerial accounting.
A. FASB. 11. The officer of a corporation responsible for the firm's published
financialstatements would be most concerned about pronouncements of the:
A. FASB.
B. AICPA.
C. GASB.
D. SEC.
E. IRS.
D. All of the above are characteristics or limitations of the 12. Which of the following is not a characteristic or limitation of the kind of
kind of information that financial reporting by business information that financial reporting by business enterprises can provide?
enterprises can provide. A. The information results in approximate, rather than exact, measures.
B. The information largely reflects the financial effects of transactions that have
already happened.
C. The information is provided and used at a cost.
D. All of the above are characteristics or limitations of the kind of information that
financial reporting by business enterprises can provide.
C. By an auditing firm cannot own any stock in the 13. The ethical concept of independence means that an accountant employed:
company being audited. A. By a corporation cannot prepare financial statements for use by the company's
bank.
B. By one company cannot work part-time for another company.
C. By an auditing firm cannot own any stock in the company being audited.
D. By one company cannot accept a job with another company in the same industry.
B. Focus on providing information for resource providers, 14. The objectives of financial reporting for nonbusiness enterprises:
rather than investors. A. Are exactly the same as those for business enterprises.
B. Focus on providing information for resource providers, rather than investors.
C. Have more of an internal utilization rather than external reporting focus.
D. Do not give consideration to the cost of providing information.
D. Attempt to be honest and forthright in dealings and 15. The ethical concept of integrity means that an individual must:
communications with others. A. Sign a pledge to abide by all laws and regulations.
B. Report to a supervisor any violation of the code of conduct of her company that is
observed.
C. Read, understand, and agree to follow all provisions of her employer's code of
conduct.
D. Attempt to be honest and forthright in dealings and communications with others.
Other 2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,D. All of the above require accounting information. 1. Which of the following entities would not require accounting information
pertaining to their economic activities?
A. Social clubs.
B. Not-for-profit entities.
C. State governments.
D. All of the above require accounting information.
E. None of the above requires accounting information.
B. To measure the current market value of the business 2. Which of the following is not an objective of financial reporting described in FASB
enterprise. Concepts Statement No. 1?
A. To provide information about how management of an enterprise has discharged
its stewardship responsibility to owners.
B. To measure the current market value of the business enterprise.
C. To provide information so potential investors or creditors can make their own
predictions of future earnings.
D. To focus primarily on information about earnings and its components.
E. All of the above are objectives of financial reporting.
C. The FASB follows a due process procedure that permits 3. Which of the following statements about the Financial Accounting Standards
input from interested parties before a standard is issued. Board is correct?
A. The FASB is an agency of the Federal government.
B. The FASB has the authority to fine a noncompliant firm.
C. The FASB follows a due process procedure that permits input from interested
parties before a standard is issued.
D. The FASB is controlled by the American Institute of CPA's.
E. None of the above statements is correct.
C. financial accounting, national accounting, cost 4. Major classifications of accounting activity would not include:
accounting. A. financial accounting, internal auditing, public accounting.
B. internal auditing, governmental accounting, managerial accounting.
C. financial accounting, national accounting, cost accounting.
D. auditing, income tax accounting, governmental accounting.
B. Probability of success of a new product development. 5. Which of the following is not an example of a decision or informed judgment that
a potential investor would make from accounting information?
A. Future profitability based on past profitability.
B. Probability of success of a new product development.
C. A forecast of dividends.
D. Assessment of risk that a company may have more debt than it can repay if the
economy enters a recession.
A. Personnel turnover statistics (i.e., hiring and 6. Which of the following is not an example of a decision or informed judgment that
terminations). a potential employee could make from accounting information?
A. Personnel turnover statistics (i.e., hiring and terminations).
B. Probability of the company's ability to make profit sharing plan contributions in
the future.
C. Assessment of the risk that the company may become bankrupt in the near
future.
D. The extent of the company's commitment to a research program.
D. A Certified Public Accountant. 7. Which of the following is qualified to express an auditor's opinion about an entity's
financial statements?
A. A Comptroller.
B. A Certified Management Accountant.
C. A Certified Internal Auditor.
D. A Certified Public Accountant.
E. None of the above.
C. Managerial accounting. 8. Which classification of accounting is most concerned with the use of economic
and financial information to plan and control many of the activities of the entity?
A. Financial accounting.
B. Auditing-Public accounting.
C. Managerial accounting.
D. Income tax accounting.
, D. states that they are presented in conformance with 9. An unqualified auditors' opinion about an entity's financial statements:
generally accepted accounting principles. A. is a clean bill of health.
B. means that all of the entity's transactions during the audited period were checked
out.
C. guarantees that the entity was not involved in or the victim of any fraudulent
activities during the audited period.
D. states that they are presented in conformance with generally accepted
accounting principles.
D. Managerial accounting. 10. Cost accounting is a subset of which of the following?
A. Internal auditing.
B. Public auditing.
C. Cost analysis.
D. Managerial accounting.
A. FASB. 11. The officer of a corporation responsible for the firm's published
financialstatements would be most concerned about pronouncements of the:
A. FASB.
B. AICPA.
C. GASB.
D. SEC.
E. IRS.
D. All of the above are characteristics or limitations of the 12. Which of the following is not a characteristic or limitation of the kind of
kind of information that financial reporting by business information that financial reporting by business enterprises can provide?
enterprises can provide. A. The information results in approximate, rather than exact, measures.
B. The information largely reflects the financial effects of transactions that have
already happened.
C. The information is provided and used at a cost.
D. All of the above are characteristics or limitations of the kind of information that
financial reporting by business enterprises can provide.
C. By an auditing firm cannot own any stock in the 13. The ethical concept of independence means that an accountant employed:
company being audited. A. By a corporation cannot prepare financial statements for use by the company's
bank.
B. By one company cannot work part-time for another company.
C. By an auditing firm cannot own any stock in the company being audited.
D. By one company cannot accept a job with another company in the same industry.
B. Focus on providing information for resource providers, 14. The objectives of financial reporting for nonbusiness enterprises:
rather than investors. A. Are exactly the same as those for business enterprises.
B. Focus on providing information for resource providers, rather than investors.
C. Have more of an internal utilization rather than external reporting focus.
D. Do not give consideration to the cost of providing information.
D. Attempt to be honest and forthright in dealings and 15. The ethical concept of integrity means that an individual must:
communications with others. A. Sign a pledge to abide by all laws and regulations.
B. Report to a supervisor any violation of the code of conduct of her company that is
observed.
C. Read, understand, and agree to follow all provisions of her employer's code of
conduct.
D. Attempt to be honest and forthright in dealings and communications with others.
