Admission Test Certified Public Accountant (Financial Accounting & Reporting) : Financial-Accounting-Reporting valid dumps

Financial-Accounting-Reporting real exams

Exam Code: Financial-Accounting-Reporting

Exam Name: Certified Public Accountant (Financial Accounting & Reporting)

Updated: Jul 01, 2025

Q & A: 161 Questions and Answers

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

1. A transaction that is unusual in nature and infrequent in occurrence should be reported separately as a component of income:

A) After cumulative effect of accounting changes and before discontinued operations of a segment of a business.
B) Before cumulative effect of accounting changes and before discontinued operations of a segment of a business.
C) After cumulative effect of accounting changes and after discontinued operations of a segment of a business.
D) After discontinued operations of a segment of a business.


2. Dean Co. acquired 100% of Morey Corp. prior to 1989. During 1989, the individual companies included in their financial statements the following:

What amount should be reported as related party disclosures in the notes to Dean's 1989 consolidated financial statements?

A) $155,000
B) $175,000
C) $150,000
D) $330,000


3. On December 31, 20X2, the Board of Directors of Maxy Manufacturing, Inc. committed to a plan to discontinue the operations of its Alpha division. Maxy estimated that Alpha's 20X3 operating loss would be $500,000 and that the fair value of Alpha's facilities was $300,000 less than their carrying amounts.
Alpha's 20X2 operating loss was $1,400,000, and the division was actually sold for $400,000 less than its carrying amount in 20X3. Maxy's effective tax rate is 30%.
In its 20X2 income statement, what amount should Maxy report as loss from discontinued operations?

A) $1,190,000
B) $980,000
C) $1,400,000
D) $1,700,000


4. According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on:

A) Reporting on management's stewardship.
B) The needs of the users of the information.
C) The need for conservatism.
D) Generally accepted accounting principles.


5. Under FASB Statement of Financial Accounting Concepts #5, which of the following items would cause earnings to differ from comprehensive income for an enterprise in an industry not having specialized accounting principles?

A) Unrealized loss on investments in current marketable equity securities held for trading.
B) Unrealized loss on investments in noncurrent marketable equity securities available for sale.
C) Loss on exchange of nonmonetary assets with commercial substance.
D) Loss on exchange of nonmonetary assets without commercial substance.


Solutions:

Question # 1
Answer: D
Question # 2
Answer: B
Question # 3
Answer: A
Question # 4
Answer: B
Question # 5
Answer: B

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