Admission Test Financial-Accounting-Reporting Q&A - in .pdf
- Exam Code: Financial-Accounting-Reporting
- Exam Name: Certified Public Accountant (Financial Accounting & Reporting)
- Updated: Sep 19, 2026
- Q & A: 161 Questions and Answers
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- Exam Code: Financial-Accounting-Reporting
- Exam Name: Certified Public Accountant (Financial Accounting & Reporting)
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- Updated: Sep 19, 2026
- Q & A: 161 Questions and Answers
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Admission Test Financial-Accounting-Reporting Q&A - Testing Engine
- Exam Code: Financial-Accounting-Reporting
- Exam Name: Certified Public Accountant (Financial Accounting & Reporting)
- Updated: Sep 19, 2026
- Q & A: 161 Questions and Answers
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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Financial Reporting | 30-40% | - General Purpose Financial Statements - Financial Reporting for Nonprofits - State and Local Government Reporting - Special Purpose Frameworks - Conceptual Framework and Standard-Setting |
| Select Financial Statement Accounts | 30-40% | - Revenue Recognition - Liabilities - Equity - Expenses and Other Items - Assets |
| Select Transactions | 25-35% | - Fair Value Measurements - Leases - Business Combinations and Consolidations - Subsequent Events and Fair Value Disclosures - Derivatives and Hedge Accounting |
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
On January 2, 20X5, to better reflect the variable use of its only machine, Holly, Inc. elected to change its method of depreciation from the straight-line method to the units of production method. The original cost of the machine on January 2, 20X3, was $50,000, and its estimated life was 10 years. Holly estimates that the machine's total life is 50,000 machine hours. Machine hours usage was 8,500 during 20X4 and 3,500 during 20X3.
Holly's income tax rate is 30%. Holly should report the accounting change in its 20X5 financial statements as a(n):
- A. None of the above.
- B. Cumulative effect of a change in accounting principle of $1,400 in its income statement.
- C. Adjustment to beginning retained earnings of $2,000.
- D. Cumulative effect of a change in accounting principle of $2,000 in its income statement.
Correct Answer: A 🗳️
In 1990, Teller Co. incurred losses arising from its guilty plea in its first antitrust action, and from a substantial increase in production costs caused when a major supplier's workers went on strike. Which of these losses should be reported as an extraordinary item?
- A. Option C
- B. Option D
- C. Option A
- D. Option B
Correct Answer: A 🗳️
The following information pertains to Aria Corp. and its divisions for the year ended December 31, 1988:
Aria and all of its divisions are engaged solely in manufacturing operations. Aria has a reportable segment if that segment's revenue exceeds:
- A. $204,000
- B. $260,000
- C. $264,000
- D. $200,000
Correct Answer: B 🗳️
A change from the cost approach to the market approach of measuring fair value is considered to be what type of accounting change?
- A. Change in valuation technique.
- B. Error correction.
- C. Change in accounting principle.
- D. Change in accounting estimate.
Correct Answer: D 🗳️
Which of the following factors determines whether an identified segment of an enterprise should be reported in the enterprise's financial statements under SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information?
I. The segment's assets constitute more than 10% of the combined assets of all operating segments.
II. The segment's liabilities constitute more than 10% of the combined liabilities of all operating segments.
- A. Neither I nor II.
- B. II only.
- C. I only.
- D. Both I and II.
Correct Answer: C 🗳️
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