1. Home
  2. AICPA
  3. CPA-Financial CPA Exam Questions

Free CPA-Financial CPA Exam Questions - AICPA CPA-Financial Exam

AICPA CPA-Financial Exam

CPA Financial Accounting and Reporting

Total Questions: 163

AICPA-Financial Exam - Prepare from Latest, Not Redundant Questions!

Many candidates desire to prepare their AICPA-Financial exam with the help of only updated and relevant study material. But during their research, they usually waste most of their valuable time with information that is either not relevant or outdated. Study4Exam has a fantastic team of subject-matter experts that make sure you always get the most up-to-date preparatory material. Whenever there is a change in the syllabus of the CPA Financial Accounting and Reporting exam, our team of experts updates CPA-Financial questions and eliminates outdated questions. In this way, we save you money and time.

Do Not Fall for Cheap and Old AICPA-Financial Exam Questions

Study4Exam offers Premium High-Quality Exam Questions

Find out what will be covered on the exam and how it will be presented so you can prepare adequately. You can better prepare for the AICPA-Financial exam by familiarizing yourself with the types of questions and topics covered on the exam. Don't squander your time studying irrelevant material; instead, focus on what will be on the actual Certified Public Accountant exam.

Not Just Questions - Get Real AICPA-Financial Exam Experience

Create a schedule that allows you to devote sufficient time each day to studying for the CPA Financial Accounting and Reporting exam. Try to cover the complete syllabus of the Certified Public Accountant exam. Do a self-assessment of preparation to know your weak spots. Fill these gaps in your preparation with our preparatory material and ace your exam on the first attempt.

AICPA CPA-Financial CPA Questions

Q1.

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 B represents the general accounting treatment required for these transactions. These treatments are:

* Cumulative effect approach - Include the cumulative effect of the adjustment resulting from the accounting change or error correction in the 1993 financial statements, and do not restate the 1992 financial statements.

* Retroactive or retrospective restatement approach - Restate the 1992 financial statements and adjust 1992 beginning retained earnings if the error or change affects a period prior to 1992.

* Prospective approach - Report 1993 and future financial statements on the new basis but do not restate 1992 financial statements.

During 1993, Quo increased its investment in Worth, Inc. from a 10% interest, purchased in 1992, to 30%, and acquired a seat on Worth's board of directors. As a result of its increased investment, Quo changed its method of accounting for investment in Worth, Inc. from the cost method to the equity method.

List B

Q2.

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 B represents the general accounting treatment required for these transactions. These treatments are:

* Cumulative effect approach - Include the cumulative effect of the adjustment resulting from the accounting change or error correction in the 1993 financial statements, and do not restate the 1992 financial statements.

* Retroactive or retrospective restatement approach - Restate the 1992 financial statements and adjust 1992 beginning retained earnings if the error or change affects a period prior to 1992.

* Prospective approach - Report 1993 and future financial statements on the new basis but do not restate 1992 financial statements.

Item to Be Answered

Quo changed from FIFO to average cost to account for its raw materials and work in process inventories.

List B (Select one)

Q3.

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 FIFO to average cost to account for its raw materials and work in process inventories.

List A (Select one)

Q4.

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 B represents the general accounting treatment required for these transactions. These treatments are:

* Cumulative effect approach - Include the cumulative effect of the adjustment resulting from the accounting change or error correction in the 1993 financial statements, and do not restate the 1992 financial statements.

* Retroactive or retrospective restatement approach - Restate the 1992 financial statements and adjust 1992 beginning retained earnings if the error or change affects a period prior to 1992.

* Prospective approach - Report 1993 and future financial statements on the new basis but do not restate 1992 financial statements.

Item to Be Answered

Quo changed from LIFO to FIFO to account for its finished goods inventory.

List B (Select one)

Q5.

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)

Solutions:
Question: 1 Answer: B
Question: 2 Answer: B
Question: 3 Answer: A
Question: 4 Answer: B
Question: 5 Answer: A

Limited Time Offer

50%

Off

Get Premium CPA-Financial Questions as Interactive Practice Test or PDF

Get Full Access for AICPA CPA-Financial questions with 50% exclusive Discount

Get All Questions

Note: If you see any error in these AICPA CPA Financial Accounting and Reporting questions or answers, get in touch with us via email: support@study4exam.com.

CPA-Financial Exam Details

CPA-Financial Exam Syllabus

Disscuss AICPA CPA-Financial Topics, Questions or Ask Anything Related

Currently there are no comments in this discussion, be the first to comment!