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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Financial Reporting | 30% - 40% | - General Purpose Financial Reporting
|
| Select Balance Sheet Accounts | 30% - 40% | - Assets, Liabilities and Equity
|
| Select Transactions | 25% - 35% | - Accounting and Reporting Transactions
|
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
How should the effect of a change in accounting estimate be accounted for?
- A. By reporting pro forma amounts for prior periods.
- B. In the period of change and future periods if the change affects both.
- C. By restating amounts reported in financial statements of prior periods.
- D. As a prior period adjustment to beginning retained earnings.
Correct Answer: B 🗳️
Taft Corp. discloses supplemental industry segment information. The following information is available for 1992:
Additional 1992 expenses, not included above, are as follows:
Indirect operating expenses $7,200
General corporate expenses 4,800
Segment C's 1992 operating profit was:
- A. $3,200
- B. $2,000
- C. $5,000
- D. $2,600
Correct Answer: C 🗳️
During 1992, Krey Co. increased the estimated quantity of copper recoverable from its mine. Krey uses the units of production depletion method. As a result of the change, which of the following should be reported in Krey's 1992 financial statements?
- A. Option D
- B. Option B
- C. Option C
- D. Option A
Correct Answer: C 🗳️
Which of the following statements regarding fair value is/are correct?
I. The fair value of an asset or liability is specific to the entity making the fair value measurement.
II. Fair value is the price to acquire an asset or assume a liability.
III. Fair value includes transportation costs, but not transaction costs.
IV. The price in the principal market for an asset or liability will be the fair value measurement.
- A. I & II
- B. III & IV
- C. II & III
- D. I & IV
Correct Answer: B 🗳️
The summary of significant accounting policies should disclose the:
- A. Terms for convertible debt to be exchanged for common stock.
- B. Criteria for determining which investments are treated as cash equivalents.
- C. Concentration of credit risk of all financial instruments by geographical region.
- D. Maturity dates of noncurrent debts.
Correct Answer: B 🗳️
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