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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:
1. Financial reporting by a development stage enterprise differs from financial reporting for an established operating enterprise in regard to footnote disclosures:
A) Only.
B) And revenue and expense recognition principles.
C) And expense recognition principles only.
D) And revenue recognition principles only.
2. During 1994, Orca Corp. decided to change from the FIFO method of inventory valuation to the weightedaverage method. Inventory balances under each method were as follows:
Orca's income tax rate is 30%.
Orca should report the cumulative effect of this accounting change as a(n):
A) Extraordinary item.
B) Component of income from continuing operations.
C) Adjustment to beginning retained earnings.
D) Component of income after extraordinary items.
3. 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 A
C) Option B
D) Option C
4. 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) $175,000
B) $155,000
C) $330,000
D) $150,000
5. During 1990, Fuqua Steel Co. had the following unusual financial events occur:
* Bonds payable were retired five years before their scheduled maturity, resulting in a $260,000 gain. Fuqua has frequently retired bonds early when interest rates declined significantly.
* A steel forming segment suffered $255,000 in losses due to hurricane damage. This was the fourth similar loss sustained in a 5-year period at that location.
* A component of Fuqua's operations, steel transportation, was sold at a net loss of $350,000.
This was Fuqua's first divestiture of one of its operating segments.
Before income taxes, what amount of gain (loss) should be reported separately as a component of income from continuing operations in 1990?
A) $5,000
B) $(255,000)
C) $260,000
D) $(350,000)
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: A |








