Acct 3110 Exam 1 Actual Questions and
Answers 2026
True or false: Financial accounting is primarily concerned with
providing financial information to external users. -
correct answer ✅True
The primary forms of business organization in the United States are
the sole proprietorship, ____ , and the corporation. -
correct answer ✅partnership
Which accounting model best meets the primary goal of users of
financial reporting? -
correct answer ✅Accrual basis
The financial reporting model used by the majority of profit
oriented companies is ____ accounting -
correct answer ✅Accrual
If the SEC does not agree with a standard issued by the private
sector, it can -
correct answer ✅force a change in the standard.
,Acct 3110 Exam 1 Actual Questions and
Answers 2026
_____ accounting is chiefly concerned with providing information
to external users -
correct answer ✅Financial
The AICPA is the national professional organization for certified
professional public ______ -
correct answer ✅accountants
Which of the following forms of business provide shares of stock as
an ownership interest? -
correct answer ✅Corporation
The ______ was established to set U.S. accounting standards and is
the current standard setting body -
correct answer ✅FASB
Which of the following models is best in helping predict future cash
flows? -
correct answer ✅Accrual accounting
In addition to issuing accounting standards, the FASB has
formulated a conceptual _______ to provide an underlying
, Acct 3110 Exam 1 Actual Questions and
Answers 2026
theoretical and conceptual structure for accounting standards -
correct answer ✅framework
True or false: Cash basis accounting is the required accounting
method for most profit-oriented companies. -
correct answer ✅False
What was the purpose of the FASB Accounting Standards
Codification project? -
correct answer ✅Reorganize all relevant accounting
pronouncements in U.S. GAAP.
The legal authority to set accounting and reporting standards for
companies whose securities are publicly traded lies with the -
correct answer ✅SEC
Which organization is currently the national professional
organization for certified professional public accountants? -
correct answer ✅The AICPA
Answers 2026
True or false: Financial accounting is primarily concerned with
providing financial information to external users. -
correct answer ✅True
The primary forms of business organization in the United States are
the sole proprietorship, ____ , and the corporation. -
correct answer ✅partnership
Which accounting model best meets the primary goal of users of
financial reporting? -
correct answer ✅Accrual basis
The financial reporting model used by the majority of profit
oriented companies is ____ accounting -
correct answer ✅Accrual
If the SEC does not agree with a standard issued by the private
sector, it can -
correct answer ✅force a change in the standard.
,Acct 3110 Exam 1 Actual Questions and
Answers 2026
_____ accounting is chiefly concerned with providing information
to external users -
correct answer ✅Financial
The AICPA is the national professional organization for certified
professional public ______ -
correct answer ✅accountants
Which of the following forms of business provide shares of stock as
an ownership interest? -
correct answer ✅Corporation
The ______ was established to set U.S. accounting standards and is
the current standard setting body -
correct answer ✅FASB
Which of the following models is best in helping predict future cash
flows? -
correct answer ✅Accrual accounting
In addition to issuing accounting standards, the FASB has
formulated a conceptual _______ to provide an underlying
, Acct 3110 Exam 1 Actual Questions and
Answers 2026
theoretical and conceptual structure for accounting standards -
correct answer ✅framework
True or false: Cash basis accounting is the required accounting
method for most profit-oriented companies. -
correct answer ✅False
What was the purpose of the FASB Accounting Standards
Codification project? -
correct answer ✅Reorganize all relevant accounting
pronouncements in U.S. GAAP.
The legal authority to set accounting and reporting standards for
companies whose securities are publicly traded lies with the -
correct answer ✅SEC
Which organization is currently the national professional
organization for certified professional public accountants? -
correct answer ✅The AICPA
