Abstract A 1991 study reported that black accounting majors' performance in Intermediate Accounting varies directly with their ACT scores and that those with Composite ACT scores of 18 and above performed significantly better than students with lower scores. The study postulated that, if this positive correlation could be extended across undergraduate accounting studies, then Composite ACT scores might be helpful in identifying students likely to complete their accounting studies. This implication makes a further examination of the nature of this relation essential. The present study: (1) examines not only the Composite ACT scores of black students, but also Math and English ACT scores, and (2) augments the population studied to include both black accounting majors and nonmajors enrolled in Principles of Accounting. Results indicate that a positive correlation exists between both Composite and Math ACT scores and black student performance. English ACT scores were not found to be significantly related to successful course completion. Also, ACT scores do not appear to distinguish between failing students and those receiving a "C" in the first Accounting Principles course. Implications of these findings and suggestions for future research are then discussed.
Ward et al. (Wed,) studied this question.