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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:

SectionObjectives
Equity, Investments, and Business Combinations- Business combinations and consolidations
- Bonds and debt instruments
- Stockholders' equity
Financial Statements and Transactions- Balance sheet and statement of cash flows
- Revenue recognition (ASC 606)
- Income statement and comprehensive income
Governmental and Not-for-Profit Accounting- Governmental fund accounting
- Not-for-profit financial reporting
Assets and Liabilities Accounting- Cash, receivables, and inventory
- Leases (ASC 842)
- Liabilities and contingencies
- Fixed assets and intangible assets
Conceptual Framework and Financial Reporting- FASB conceptual framework
- Disclosure requirements
- Financial statement presentation
Specialized Accounting Topics- Accounting changes and error corrections
- Pensions and post-employment benefits
- Foreign currency transactions

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

Chester Corp. was a development stage enterprise from its inception on September 1, 1987 to December 31, 1988. The following information was taken from Chester's accounting records for the above period:

For the period September 1, 1987 to December 31, 1988, what amount should Chester report as net loss?

  • A. $ 50,000
  • B. $350,000
  • C. $150,000
  • D. $450,000
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Which of the following statements regarding fair value is/are correct?
I. The fair value of an asset or liability is specific to the entity making the fair value measurement.
II. Fair value is the price to acquire an asset or assume a liability.
III. Fair value includes transportation costs, but not transaction costs.
IV. The price in the principal market for an asset or liability will be the fair value measurement.

  • A. II & III
  • B. III & IV
  • C. I & IV
  • D. I & II
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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. Prior period adjustment resulting from the correction of an error.
  • B. Component of income after extraordinary item.
  • C. Prior period adjustment resulting from the change in accounting principle.
  • D. Component of income before extraordinary item.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

If a company is not presenting comparative financial statements, the correction of an error in the financial statements of a prior period should be reported, net of applicable income taxes, in the current:

  • A. Retained earnings statement after net income but before dividends.
  • B. Income statement after income from continuing operations and before extraordinary items.
  • C. Income statement after income from continuing operations and after extraordinary items.
  • D. Retained earnings statement as an adjustment of the opening balance.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Taft Corp. discloses supplemental industry segment information. The following information is available for 1992:

Additional 1992 expenses, not included above, are as follows:
Indirect operating expenses $7,200
General corporate expenses 4,800
Segment C's 1992 operating profit was:

  • A. $2,000
  • B. $5,000
  • C. $3,200
  • D. $2,600
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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