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- Exam Code: Financial-Accounting-Reporting
- Exam Name: Certified Public Accountant (Financial Accounting & Reporting)
- Q & A: 161 Questions and Answers
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- Exam Code: Financial-Accounting-Reporting
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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Select Balance Sheet Accounts | 30% - 40% | - Assets, Liabilities and Equity
|
| Topic 2: Select Transactions | 25% - 35% | - Accounting and Reporting Transactions
|
| Topic 3: Financial Reporting | 30% - 40% | - General Purpose Financial Reporting
|
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
Question #1
Tack, Inc. reported a retained earnings balance of $150,000 at December 31,1990. In June 1991, Tack discovered that merchandise costing $40,000 had not been included in inventory in its 1990 financial statements. Tack has a 30% tax rate. What amount should Tack report as adjusted beginning retained earnings in its statement of retained earnings at December 31, 1991?
- A. $122,000
- B. $178,000
- C. $150,000
- D. $190,000
Answer: B
Question #2
Belle Co. determined after four years that the estimated useful life of its labeling machine should be 10 years rather than 12 years. The machine originally cost $46,000 and had an estimated salvage value of $1,000. Belle uses straight-line depreciation. What amount should Belle report as depreciation expense for the current year?
- A. $3,750
- B. $5,000
- C. $4,500
- D. $3,200
Answer: B
Question #3
A development stage enterprise should use the same generally accepted accounting principles that apply to established operating enterprises for:
- A. Option A
- B. Option C
- C. Option B
- D. Option D
Answer: A
Question #4
A transaction that is unusual, but not infrequent, should be reported separately as a(an):
- A. Component of income from continuing operations, net of applicable income taxes.
- B. Component of income from continuing operations, but not net of applicable income taxes.
- C. Extraordinary item, net of applicable income taxes.
- D. Extraordinary item, but not net of applicable income taxes.
Answer: B
Question #5
YIV, Inc. is a multidivisional corporation, which has both intersegment sales and sales to unaffiliated customers. YIV should report segment financial information for each division meeting which of the following criteria?
- A. Segment revenue is 10% or more of combined revenue of all the company segments.
- B. Segment operating profit or loss is 10% or more of consolidated profit or loss.
- C. Segment revenue is 10% or more of consolidated revenue.
- D. Segment operating profit or loss is 10% or more of combined operating profit or loss of all company segments.
Answer: A
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