BUS-A 302 Accounting Research (1 cr.) P
BUS-A 302 – ACCOUNTING RESEARCH | EXAM QUESTIONS AND
CORRECT ANSWERS | VERIFIED TAX RESEARCH AND ACCOUNTING
LATEST 2026/2027
BUS-A 302 Accounting Research (1 cr.) P
1. In practice, the main purpose of accounting research is to:
A. Replace the professional judgment of the engagement partner
B. Develop new accounting theories for publication in academic journals
C. Identify the reporting method that produces the highest net income
D. Locate authoritative support for how a transaction or event should be
recognized, measured, presented, and disclosed
ANSWER : D. Locate authoritative support for how a transaction or
event should be recognized, measured, presented, and disclosed
Practitioner research is applied research aimed at finding authoritative
guidance that supports a reporting conclusion for a specific fact pattern.
2. Which step should come first in a well-organized accounting research
process?
A. Identify and clearly define the issue to be researched
B. Search the Master Glossary for every term in the contract
C. Draft the conclusion for the client
D. Contact the FASB technical inquiry service
ANSWER : A. Identify and clearly define the issue to be researched
A research effort cannot be focused until the accounting problem is
defined; every later step depends on a clearly stated issue.
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, BUS-A 302 Accounting Research (1 cr.) P
3. Research carried out by a staff accountant to decide how a client
should account for a new supplier rebate program is best described as:
A. Theoretical research
B. Applied research
C. Archival research
D. Behavioral research
ANSWER : B. Applied research
Applied research addresses a specific, practical reporting problem,
whereas theoretical research explores broader questions about
accounting itself.
4. Which of the following is the most appropriate order of the core
elements in a research memo?
A. Conclusion, facts, recommendations, references, issues
B. Issues, conclusion, analysis, facts, references
C. Analysis, issues, conclusion, facts, guidance
D. Facts, issues, authoritative guidance, analysis, conclusion
ANSWER : D. Facts, issues, authoritative guidance, analysis,
conclusion
A standard memo moves from the facts and questions through the
relevant literature and reasoning to a supported conclusion.
5. A well-stated research question should be:
A. Phrased to lead to the ANSWER management prefers
B. Broad enough to cover every possible reporting issue of the client
C. Narrow and specific enough to be ANSWER ed with authoritative
guidance
D. Written in the vocabulary of the client's industry rather than
accounting terms
ANSWER : C. Narrow and specific enough to be ANSWER ed with
authoritative guidance
Precise questions make keyword selection and literature searches
efficient and reduce the risk of an unsupported conclusion.
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, BUS-A 302 Accounting Research (1 cr.) P
6. Generating a list of accounting terms that describe a transaction
before searching the Codification is mainly intended to:
A. Improve the effectiveness of keyword searches and browsing
B. Eliminate the need to read the Master Glossary
C. Replace the need to document the facts
D. Satisfy a requirement of the PCAOB
ANSWER : A. Improve the effectiveness of keyword searches and
browsing
Relevant terminology helps the researcher locate the correct Topic and
Subtopic faster, since the Codification uses technical wording.
7. When a researcher finds two acceptable alternatives within GAAP for
the same transaction, the choice between them primarily requires:
A. A vote of the FASB
B. Adoption of the alternative with the lower tax liability
C. Professional judgment
D. Approval from the SEC Office of the Chief Accountant in every case
ANSWER : C. Professional judgment
Where standards allow alternatives, the preparer applies professional
judgment based on the facts, economic substance, and consistency.
8. The principle that financial reporting should reflect the economics of
a transaction rather than merely its legal documentation is known as:
A. Conservatism
B. Going concern
C. Historical cost
D. Substance over form
ANSWER : D. Substance over form
Substance over form directs the researcher to look past contract labels to
the underlying economic effects of an arrangement.
Page 3 of 65
, BUS-A 302 Accounting Research (1 cr.) P
9. Documenting the research process and conclusion is important
chiefly because:
A. It is the only way to make the conclusion authoritative GAAP
B. It provides evidence supporting the accounting treatment for
reviewers, auditors, and regulators
C. It shifts legal liability for the conclusion to the FASB
D. It allows the entity to avoid disclosure of the transaction
ANSWER : B. It provides evidence supporting the accounting
treatment for reviewers, auditors, and regulators
A documented trail shows the facts, literature, and reasoning used, so
others can evaluate and rely on the conclusion.
10. After reaching a preliminary conclusion, the researcher should
next:
A. Delete notes on alternatives that were rejected
B. Stop, because preliminary conclusions are final
C. Seek a new issue to research
D. Communicate the conclusion and its support clearly to the intended
audience
ANSWER : D. Communicate the conclusion and its support clearly to
the intended audience
Communication, usually in a memo, is the final phase; rejected
alternatives are normally kept to show why they were not chosen.
SECTION II: THE STANDARD-SETTING ENVIRONMENT
11. Which organization oversees both the FASB and the GASB?
A. Public Company Accounting Oversight Board (PCAOB)
B. Financial Accounting Foundation (FAF)
C. American Institute of CPAs (AICPA)
D. International Accounting Standards Board (IASB)
ANSWER : B. Financial Accounting Foundation (FAF)
The FAF is the independent, private-sector body that appoints members
of and funds the FASB and GASB.
Page 4 of 65
BUS-A 302 – ACCOUNTING RESEARCH | EXAM QUESTIONS AND
CORRECT ANSWERS | VERIFIED TAX RESEARCH AND ACCOUNTING
LATEST 2026/2027
BUS-A 302 Accounting Research (1 cr.) P
1. In practice, the main purpose of accounting research is to:
A. Replace the professional judgment of the engagement partner
B. Develop new accounting theories for publication in academic journals
C. Identify the reporting method that produces the highest net income
D. Locate authoritative support for how a transaction or event should be
recognized, measured, presented, and disclosed
ANSWER : D. Locate authoritative support for how a transaction or
event should be recognized, measured, presented, and disclosed
Practitioner research is applied research aimed at finding authoritative
guidance that supports a reporting conclusion for a specific fact pattern.
2. Which step should come first in a well-organized accounting research
process?
A. Identify and clearly define the issue to be researched
B. Search the Master Glossary for every term in the contract
C. Draft the conclusion for the client
D. Contact the FASB technical inquiry service
ANSWER : A. Identify and clearly define the issue to be researched
A research effort cannot be focused until the accounting problem is
defined; every later step depends on a clearly stated issue.
Page 1 of 65
, BUS-A 302 Accounting Research (1 cr.) P
3. Research carried out by a staff accountant to decide how a client
should account for a new supplier rebate program is best described as:
A. Theoretical research
B. Applied research
C. Archival research
D. Behavioral research
ANSWER : B. Applied research
Applied research addresses a specific, practical reporting problem,
whereas theoretical research explores broader questions about
accounting itself.
4. Which of the following is the most appropriate order of the core
elements in a research memo?
A. Conclusion, facts, recommendations, references, issues
B. Issues, conclusion, analysis, facts, references
C. Analysis, issues, conclusion, facts, guidance
D. Facts, issues, authoritative guidance, analysis, conclusion
ANSWER : D. Facts, issues, authoritative guidance, analysis,
conclusion
A standard memo moves from the facts and questions through the
relevant literature and reasoning to a supported conclusion.
5. A well-stated research question should be:
A. Phrased to lead to the ANSWER management prefers
B. Broad enough to cover every possible reporting issue of the client
C. Narrow and specific enough to be ANSWER ed with authoritative
guidance
D. Written in the vocabulary of the client's industry rather than
accounting terms
ANSWER : C. Narrow and specific enough to be ANSWER ed with
authoritative guidance
Precise questions make keyword selection and literature searches
efficient and reduce the risk of an unsupported conclusion.
Page 2 of 65
, BUS-A 302 Accounting Research (1 cr.) P
6. Generating a list of accounting terms that describe a transaction
before searching the Codification is mainly intended to:
A. Improve the effectiveness of keyword searches and browsing
B. Eliminate the need to read the Master Glossary
C. Replace the need to document the facts
D. Satisfy a requirement of the PCAOB
ANSWER : A. Improve the effectiveness of keyword searches and
browsing
Relevant terminology helps the researcher locate the correct Topic and
Subtopic faster, since the Codification uses technical wording.
7. When a researcher finds two acceptable alternatives within GAAP for
the same transaction, the choice between them primarily requires:
A. A vote of the FASB
B. Adoption of the alternative with the lower tax liability
C. Professional judgment
D. Approval from the SEC Office of the Chief Accountant in every case
ANSWER : C. Professional judgment
Where standards allow alternatives, the preparer applies professional
judgment based on the facts, economic substance, and consistency.
8. The principle that financial reporting should reflect the economics of
a transaction rather than merely its legal documentation is known as:
A. Conservatism
B. Going concern
C. Historical cost
D. Substance over form
ANSWER : D. Substance over form
Substance over form directs the researcher to look past contract labels to
the underlying economic effects of an arrangement.
Page 3 of 65
, BUS-A 302 Accounting Research (1 cr.) P
9. Documenting the research process and conclusion is important
chiefly because:
A. It is the only way to make the conclusion authoritative GAAP
B. It provides evidence supporting the accounting treatment for
reviewers, auditors, and regulators
C. It shifts legal liability for the conclusion to the FASB
D. It allows the entity to avoid disclosure of the transaction
ANSWER : B. It provides evidence supporting the accounting
treatment for reviewers, auditors, and regulators
A documented trail shows the facts, literature, and reasoning used, so
others can evaluate and rely on the conclusion.
10. After reaching a preliminary conclusion, the researcher should
next:
A. Delete notes on alternatives that were rejected
B. Stop, because preliminary conclusions are final
C. Seek a new issue to research
D. Communicate the conclusion and its support clearly to the intended
audience
ANSWER : D. Communicate the conclusion and its support clearly to
the intended audience
Communication, usually in a memo, is the final phase; rejected
alternatives are normally kept to show why they were not chosen.
SECTION II: THE STANDARD-SETTING ENVIRONMENT
11. Which organization oversees both the FASB and the GASB?
A. Public Company Accounting Oversight Board (PCAOB)
B. Financial Accounting Foundation (FAF)
C. American Institute of CPAs (AICPA)
D. International Accounting Standards Board (IASB)
ANSWER : B. Financial Accounting Foundation (FAF)
The FAF is the independent, private-sector body that appoints members
of and funds the FASB and GASB.
Page 4 of 65
