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Admission Test Financial-Accounting-Reporting : Certified Public Accountant (Financial Accounting & Reporting)
Exam Code: Financial-Accounting-Reporting
Exam Name: Certified Public Accountant (Financial Accounting & Reporting)
Updated: Nov 07, 2026
Q & A: 161 Questions and Answers
Financial-Accounting-Reporting Free Demo download
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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Select Financial Statement Accounts | 30-40% | - Equity - Liabilities - Assets - Revenue Recognition - Expenses and Other Items |
| Financial Reporting | 30-40% | - Conceptual Framework and Standard-Setting - Financial Reporting for Nonprofits - Special Purpose Frameworks - General Purpose Financial Statements - State and Local Government Reporting |
| Select Transactions | 25-35% | - Subsequent Events and Fair Value Disclosures - Derivatives and Hedge Accounting - Business Combinations and Consolidations - Fair Value Measurements - Leases |
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
Question #1
Lore Co. changed from the cash basis of accounting to the accrual basis of accounting during 1994. The cumulative effect of this change should be reported in Lore's 1994 financial statements as a:
- A. Component of income before extraordinary item.
- B. Prior period adjustment resulting from the change in accounting principle.
- C. Component of income after extraordinary item.
- D. Prior period adjustment resulting from the correction of an error.
Correct Answer: D 🗳️
Question #2
Brock Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative.
The adjusted trial balance at December 31, 1989 included the following expense and loss accounts:
One-half of the rented premises is occupied by the sales department. Brock's total selling expenses for 1989 are:
- A. $370,000
- B. $360,000
- C. $480,000
- D. $400,000
Correct Answer: C 🗳️
Question #3
The following costs were incurred by Griff Co., a manufacturer, during 1992:
What amount of these costs should be reported as general and administrative expenses for 1992?
- A. $550,000
- B. $260,000
- C. $810,000
- D. $635,000
Correct Answer: B 🗳️
Question #4
The effect of a material transaction that is infrequent in occurrence but not unusual in nature should be presented separately as a component of income from continuing operations when the transaction results in a:
- A. Option C
- B. Option A
- C. Option D
- D. Option B
Correct Answer: B 🗳️
Question #5
On June 30, 1991, Mill Corp. incurred a $100,000 net loss from disposal of a component of a business. Also, on June 30, 1991, Mill paid $40,000 for property taxes assessed for the calendar year 1991. What amount of the foregoing items should be included in the determination of Mill's net income or loss for the six-month interim period ended June 30, 1991?
- A. $120,000
- B. $140,000
- C. $70,000
- D. $90,000
Correct Answer: A 🗳️
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