ACCT 3001 LSU COMPREHENSIVE EXAM
REVIEW 2026 QUESTIONS WITH VERIFIED
SOLUTIONS
⩥ Fifty-one bulletins from the Committee on Accounting Procedure
(CAP) during the years 1939 to 1959, issued to deal with accounting
problems as they arose. Subsequently, the AICPA created the Accounting
Principles Board to provide a structured body of accounting principles.
Answer: Accounting Research Bulletins
⩥ The products of standard-setting (e.g., FASB standards and EITF
consensuses) included in the FASB Codification. The Updates include
the background and basis for conclusions for the new pronouncement in
a common format, regardless of the form in which such guidance may
have been issued. Updates are also issued for amendments to the SEC
content in the Codification. Answer: Accounting Standards Updates
⩥ Accounting approach, in which a company records events that change
its financial statements in the periods in which the events occur, rather
than only in the periods in which it receives or pays cash. Thus, a
company recognizes revenue when it satisfies a performance obligation
rather than when it receives cash, and it recognizes expenses when it
incurs them rather than when it pays them. Answer: accrual-basis
accounting
,⩥ The national professional organization of practicing Certified Public
Accountants (CPAs), whose various committees and boards have been
an important contributor to the development of GAAP. Answer:
American Institute of Certified Public Accountants (AICPA)
⩥ The official pronouncements of the Accounting Principles Board,
intended to be based mainly on research studies and be supported by
reasons and analysis. Between its inception in 1959 and its dissolution in
1973, the APB issued 31 opinions. Answer: APB Opinions
⩥ The arm of the AICPA that had been responsible for developing
auditing standards. The Public Company Accounting Oversight Board,
established by the Sarbanes-Oxley Act, now oversees the development
of auditing standards. Answer: Auditing Standards Board
⩥ Committee established by the AICPA in 1939 at the urging of the SEC
to deal with accounting problems. The CAP issued 51 Accounting
Research Bulletins and was replaced by the Accounting Principles Board
in 1959 Answer: Committee on Accounting Procedure (CAP)
⩥ Approach that requires that financial reporting be useful to investors
by helping them assess (1) the company's ability to generate net cash
inflows and (2) management's ability to protect and enhance the capital
providers' investments. Answer: decision-usefulness
,⩥ Group created in 1984 by the FASB to reach a consensus on how to
account for new and unusual financial transactions that might create
differing financial reporting practices. The FASB reviews and approves
all EITF consensuses, and the SEC views consensus solutions as
preferred accounting Answer: Emerging Issues Task Force (EITF)
⩥ The view that companies are distinct and separate from their owners
(present shareholders). Answer: entity perspective
⩥ Issued by the FASB, these provide interpretive guidance and also
minor amendments to standards and interpretations. Answer: FASB Staff
Positions
⩥ The accounting process that culminates in the preparation of financial
reports for use by both internal and external parties. Answer: Financial
accounting
⩥ The major organization of the standard-setting structure for financial
accounting. Its mission is to establish and improve standards of financial
accounting and reporting for the guidance and education of the public.
The FASB consists of seven members, appointed for five-year terms by
the Financial Accounting Foundation. Accounting guidance issued by
the FASB is considered generally accepted accounting principles
(GAAP). Answer: Financial Accounting Standards Board (FASB)
, ⩥ Developed by the FASB, it provides in one place all the authoritative
literature related to a particular topic. Answer: Financial Accounting
Standards Board Accounting Standards Codification (Codification)
⩥ An online, real-time database that provides easy access to the
Codification, through a topically organized structure, subdivided into
topics, subtopics, sections, and paragraphs, using a numerical index
system. Answer: Financial Accounting Standards Board Codification
Research System (CRS)
⩥ Reporting of financial information other than in formal financial
statements. Examples include the president's letter or supplementary
schedules in the corporate annual report, prospectuses, reports filed with
government agencies, news releases, management's forecasts, and social
or environmental impact statements. Answer: financial reporting
⩥ The common set of accounting standards and procedures, for which
either an authoritative accounting rule-making body has established a
principle of reporting in a given area, or over time, a given practice has
been accepted as appropriate because of its universal application
Answer: generally accepted accounting principles (GAAP)
⩥ A means of providing financial reporting information to a wide variety
of users at the least cost. Answer: general-purpose financial statements
REVIEW 2026 QUESTIONS WITH VERIFIED
SOLUTIONS
⩥ Fifty-one bulletins from the Committee on Accounting Procedure
(CAP) during the years 1939 to 1959, issued to deal with accounting
problems as they arose. Subsequently, the AICPA created the Accounting
Principles Board to provide a structured body of accounting principles.
Answer: Accounting Research Bulletins
⩥ The products of standard-setting (e.g., FASB standards and EITF
consensuses) included in the FASB Codification. The Updates include
the background and basis for conclusions for the new pronouncement in
a common format, regardless of the form in which such guidance may
have been issued. Updates are also issued for amendments to the SEC
content in the Codification. Answer: Accounting Standards Updates
⩥ Accounting approach, in which a company records events that change
its financial statements in the periods in which the events occur, rather
than only in the periods in which it receives or pays cash. Thus, a
company recognizes revenue when it satisfies a performance obligation
rather than when it receives cash, and it recognizes expenses when it
incurs them rather than when it pays them. Answer: accrual-basis
accounting
,⩥ The national professional organization of practicing Certified Public
Accountants (CPAs), whose various committees and boards have been
an important contributor to the development of GAAP. Answer:
American Institute of Certified Public Accountants (AICPA)
⩥ The official pronouncements of the Accounting Principles Board,
intended to be based mainly on research studies and be supported by
reasons and analysis. Between its inception in 1959 and its dissolution in
1973, the APB issued 31 opinions. Answer: APB Opinions
⩥ The arm of the AICPA that had been responsible for developing
auditing standards. The Public Company Accounting Oversight Board,
established by the Sarbanes-Oxley Act, now oversees the development
of auditing standards. Answer: Auditing Standards Board
⩥ Committee established by the AICPA in 1939 at the urging of the SEC
to deal with accounting problems. The CAP issued 51 Accounting
Research Bulletins and was replaced by the Accounting Principles Board
in 1959 Answer: Committee on Accounting Procedure (CAP)
⩥ Approach that requires that financial reporting be useful to investors
by helping them assess (1) the company's ability to generate net cash
inflows and (2) management's ability to protect and enhance the capital
providers' investments. Answer: decision-usefulness
,⩥ Group created in 1984 by the FASB to reach a consensus on how to
account for new and unusual financial transactions that might create
differing financial reporting practices. The FASB reviews and approves
all EITF consensuses, and the SEC views consensus solutions as
preferred accounting Answer: Emerging Issues Task Force (EITF)
⩥ The view that companies are distinct and separate from their owners
(present shareholders). Answer: entity perspective
⩥ Issued by the FASB, these provide interpretive guidance and also
minor amendments to standards and interpretations. Answer: FASB Staff
Positions
⩥ The accounting process that culminates in the preparation of financial
reports for use by both internal and external parties. Answer: Financial
accounting
⩥ The major organization of the standard-setting structure for financial
accounting. Its mission is to establish and improve standards of financial
accounting and reporting for the guidance and education of the public.
The FASB consists of seven members, appointed for five-year terms by
the Financial Accounting Foundation. Accounting guidance issued by
the FASB is considered generally accepted accounting principles
(GAAP). Answer: Financial Accounting Standards Board (FASB)
, ⩥ Developed by the FASB, it provides in one place all the authoritative
literature related to a particular topic. Answer: Financial Accounting
Standards Board Accounting Standards Codification (Codification)
⩥ An online, real-time database that provides easy access to the
Codification, through a topically organized structure, subdivided into
topics, subtopics, sections, and paragraphs, using a numerical index
system. Answer: Financial Accounting Standards Board Codification
Research System (CRS)
⩥ Reporting of financial information other than in formal financial
statements. Examples include the president's letter or supplementary
schedules in the corporate annual report, prospectuses, reports filed with
government agencies, news releases, management's forecasts, and social
or environmental impact statements. Answer: financial reporting
⩥ The common set of accounting standards and procedures, for which
either an authoritative accounting rule-making body has established a
principle of reporting in a given area, or over time, a given practice has
been accepted as appropriate because of its universal application
Answer: generally accepted accounting principles (GAAP)
⩥ A means of providing financial reporting information to a wide variety
of users at the least cost. Answer: general-purpose financial statements
