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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:

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

1. FASB Interpretations of Statements of Financial Accounting Standards have the same authority as the FASB:

A) Technical Bulletins.
B) Statements of Financial Accounting Standards.
C) Statements of Financial Accounting Concepts.
D) Emerging Issues Task Force Consensus.

2. The following question is based on the following:
Vane Co.'s trial balance of income statement accounts for the year ended December 31, 2002, included the following:

Vane's income tax rate is 30%.
In Vane's 2002 multiple-step income statement, what amount should Vane report as income from continuing operations?

A) $147,000
B) $129,500
C) $140,000
D) $126,000

3. In 1990, Teller Co. incurred losses arising from its guilty plea in its first antitrust action, and from a substantial increase in production costs caused when a major supplier's workers went on strike. Which of these losses should be reported as an extraordinary item?

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

4. Financial reporting by a development stage enterprise differs from financial reporting for an established operating enterprise in regard to footnote disclosures:

A) And expense recognition principles only.
B) And revenue recognition principles only.
C) And revenue and expense recognition principles.
D) Only.

5. According to the FASB conceptual framework, what does the concept of reliability in financial reporting include?

A) Certainty.
B) Precision.
C) Neutrality.
D) Effectiveness.

Solutions: