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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:

Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:

1. A statement of cash flows for a development stage enterprise:

A) Is not presented.
B) Is the same as that of an established operating enterprise and, in addition, shows cumulative amounts from the enterprise's inception.
C) Is the same as that of an established operating enterprise, but does not show cumulative amounts from the enterprise's inception.
D) Shows only cumulative amounts from the enterprise's inception.

2. Which of the following is true regarding the presentation of "comprehensive income."

A) Option B
B) Option D
C) Option C
D) Option A

3. Adam Corp. had the following infrequent transactions during 1989:
* A $190,000 gain on reacquisition and retirement of bonds. This material event is also considered unusual for Adam Corp.
* A $260,000 gain on the disposal of a component of a business. Adam continues similar operations at another location.
* A $90,000 loss on the abandonment of equipment.
In its 1989 income statement, what amount should Adam report as total infrequent net gains that are not considered extraordinary?

A) $450,000
B) $360,000
C) $100,000
D) $170,000

4. According to the FASB conceptual framework, which of the following is an essential characteristic of an asset?

A) An asset provides future benefits.
B) An asset is obtained at a cost.
C) The claims to an asset's benefits are legally enforceable.
D) An asset is tangible.

5. Foy Corp. failed to accrue warranty costs of $50,000 in its December 31, 1992, financial statements. In addition, a $30,000 change from straight-line to accelerated depreciation was made at the beginning of 1993. Both the $50,000 and the $30,000 are net of related income taxes. What amount should Foy report as prior period adjustments in 1993?

A) $0
B) $30,000
C) $80,000
D) $50,000

Solutions: