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: Sep 26, 2026     Q & A: 161 Questions and Answers

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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Select Transactions25-35%- Leases
- Fair Value Measurements
- Derivatives and Hedge Accounting
- Business Combinations and Consolidations
- Subsequent Events and Fair Value Disclosures
Topic 2: Select Financial Statement Accounts30-40%- Assets
- Revenue Recognition
- Expenses and Other Items
- Liabilities
- Equity
Topic 3: Financial Reporting30-40%- State and Local Government Reporting
- Conceptual Framework and Standard-Setting
- General Purpose Financial Statements
- Financial Reporting for Nonprofits
- Special Purpose Frameworks

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

Question #1

Kell Corp.'s $95,000 net income for the quarter ended September 30, 1990, included the following aftertax items:
* A $60,000 extraordinary gain, realized on April 30, 1990, was allocated equally to the second, third, and fourth quarters of 1990.
* A $16,000 cumulative-effect loss resulting from a change in inventory valuation method was recognized on August 2, 1990.
In addition, Kell paid $48,000 on February 1, 1990, for 1990 calendar-year property taxes. Of this amount, $12,000 was allocated to the third quarter of 1990.
For the quarter ended September 30, 1990, Kell should report net income of:

  • A. $111,000
  • B. $91,000
  • C. $115,000
  • D. $103,000
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #2

Which of the following factors determines whether an identified segment of an enterprise should be reported in the enterprise's financial statements under SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information?
I. The segment's assets constitute more than 10% of the combined assets of all operating segments.
II. The segment's liabilities constitute more than 10% of the combined liabilities of all operating segments.

  • A. I only.
  • B. Neither I nor II.
  • C. II only.
  • D. Both I and II.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #3

Which of the following facts concerning fixed assets should be included in the summary of significant accounting policies?

  • A. Option D
  • B. Option C
  • C. Option A
  • D. Option B
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #4

Several sources of GAAP consulted by an auditor are in conflict as to the application of an accounting principle. Which of the following should the auditor consider the most authoritative?

  • A. FASB Statements of Financial Accounting Concepts.
  • B. AICPA Technical Practice Aids.
  • C. FASB Technical Bulletins.
  • D. AICPA Accounting Interpretations.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #5

Tack, Inc. reported a retained earnings balance of $150,000 at December 31,1990. In June 1991, Tack discovered that merchandise costing $40,000 had not been included in inventory in its 1990 financial statements. Tack has a 30% tax rate. What amount should Tack report as adjusted beginning retained earnings in its statement of retained earnings at December 31, 1991?

  • A. $178,000
  • B. $190,000
  • C. $122,000
  • D. $150,000
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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