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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:

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

1. What is the purpose of information presented in notes to the financial statements?

A) To correct improper presentation in the financial statements.
B) To present management's responses to auditor comments.
C) To provide disclosures required by generally accepted accounting principles.
D) To provide recognition of amounts not included in the totals of the financial statements.

2. Which of the following is a generally accepted accounting principle that illustrates the practice of conservatism during a particular reporting period?

A) Reporting inventory at the lower of cost or market value.
B) Accrual of a contingency deemed to be reasonably possible.
C) Reporting investments with appreciated market values at market value.
D) Capitalization of research and development costs.

3. In the hierarchy of generally accepted accounting principles, APB Opinions have the same authority as AICPA:

A) Statements of Position.
B) Issues Papers.
C) Accounting Research Bulletins.
D) Industry Audit and Accounting Guides.

4. Gown, Inc. sold a warehouse and used the proceeds to acquire a new warehouse. The excess of the proceeds over the carrying amount of the warehouse sold should be reported as a(an):

A) Part of continuing operations.
B) Extraordinary gain, net of income taxes.
C) Gain from discontinued operations, net of income taxes.
D) Reduction of the cost of the new warehouse.

5. On March 15, 1992, Krol Co. paid property taxes of $90,000 on its office building for the calendar year 1992. On April 1, 1992, Krol paid $150,000 for unanticipated repairs to its office equipment. The repairs will benefit operations for the remainder of 1992. What is the total amount of these expenses that Krol should include in its quarterly income statement for the three months ended June 30, 1992?

A) $97,500
B) $172,500
C) $37,500
D) $72,500

Solutions: