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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Governmental and Not-for-Profit Accounting | - Governmental fund accounting - Not-for-profit financial reporting |
| Conceptual Framework and Financial Reporting | - FASB conceptual framework - Financial statement presentation - Disclosure requirements |
| Assets and Liabilities Accounting | - Leases (ASC 842) - Liabilities and contingencies - Cash, receivables, and inventory - Fixed assets and intangible assets |
| Specialized Accounting Topics | - Pensions and post-employment benefits - Accounting changes and error corrections - Foreign currency transactions |
| Financial Statements and Transactions | - Balance sheet and statement of cash flows - Revenue recognition (ASC 606) - Income statement and comprehensive income |
| Equity, Investments, and Business Combinations | - Bonds and debt instruments - Stockholders' equity - Business combinations and consolidations |
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
Which of the following is correct concerning financial statement disclosure of accounting policies?
- A. Disclosure of accounting policies is an integral part of the financial statements.
- B. Disclosures should duplicate details disclosed elsewhere in the financial statements.
- C. The format and location of accounting policy disclosures are fixed by generally accepted accounting principles.
- D. Disclosures should be limited to principles and methods peculiar to the industry in which the company operates.
Which of the following is true regarding the presentation of "comprehensive income."
- A. Option D
- B. Option B
- C. Option C
- D. Option A
Which of the following must be included in a company's summary of significant accounting policies in the notes to the financial statements?
- A. Summary of long-term debt outstanding.
- B. Revenue recognition policies.
- C. Description of current year equity transactions.
- D. Schedule of fixed assets.
Income tax-basis financial statements differ from those prepared under GAAP in that income tax-basis financial statements:
- A. Do not include nontaxable revenues and nondeductible expenses in determining income.
- B. Recognize certain revenues and expenses in different reporting periods.
- C. Include detailed information about current and deferred income tax liabilities.
- D. Contain no disclosures about capital and operating lease transactions.
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed, working closely with Quo's president and outside accountants, made changes in accounting policies, corrected several errors dating from 1992 and before, and instituted new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992 financial statements.
This question represents one of Quo's transactions. List A represents possible clarifications of these transactions as: a change in accounting principle, a change in accounting estimate, a correction of an error in previously presented financial statements, or neither an accounting change nor an accounting error.
Item to Be Answered
Quo changed from LIFO to FIFO to account for its finished goods inventory.
List A (Select one)
- A. Neither an accounting change nor an accounting error.
- B. Change in accounting estimate.
- C. Change in accounting principal.
- D. Correction of an error in previously presented financial statements.
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