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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:

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

1. Income tax-basis financial statements differ from those prepared under GAAP in that income tax-basis financial statements:

A) Include detailed information about current and deferred income tax liabilities.
B) Recognize certain revenues and expenses in different reporting periods.
C) Contain no disclosures about capital and operating lease transactions.
D) Do not include nontaxable revenues and nondeductible expenses in determining income.

2. What information should a public company present about revenues from its reporting segments?

A) No disclosure of revenues from foreign operations need be reported.
B) Disclose as a combined amount sales to unaffiliated customers and intracompany sales between geographic areas.
C) Disclose separately the amount of sales to unaffiliated customers and the amount of intracompany sales.
D) Disclose separately the amount of sales to unaffiliated customers but not the amount of intracompany sales between geographic areas.

3. A development stage enterprise should use the same generally accepted accounting principles that apply to established operating enterprises for:

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

4. Which of the following is not a valuation technique that can be used to measure the fair value of an asset or liability?

A) The impairment approach.
B) The cost approach.
C) The market approach.
D) The income approach.

5. According to the FASB conceptual framework, which of the following relates to both relevance and reliability?

A) Comparability.
B) Verifiability.
C) Feedback value.
D) Timeliness.

Solutions: