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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Financial Statements and Transactions | - Income statement and comprehensive income - Balance sheet and statement of cash flows - Revenue recognition (ASC 606) |
| Governmental and Not-for-Profit Accounting | - Governmental fund accounting - Not-for-profit financial reporting |
| Equity, Investments, and Business Combinations | - Business combinations and consolidations - Stockholders' equity - Bonds and debt instruments |
| Specialized Accounting Topics | - Pensions and post-employment benefits - Foreign currency transactions - Accounting changes and error corrections |
| Conceptual Framework and Financial Reporting | - Disclosure requirements - Financial statement presentation - FASB conceptual framework |
| Assets and Liabilities Accounting | - Liabilities and contingencies - Leases (ASC 842) - Fixed assets and intangible assets - Cash, receivables, and inventory |
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
Which of the following accounting pronouncements is the most authoritative?
- A. AICPA Statement of Position.
- B. FASB Statement of Financial Accounting Concepts.
- C. FASB Technical Bulletin.
- D. AICPA Accounting Principles Board Opinion.
Opto Co. is a publicly-traded, consolidated enterprise reporting segment information. Which of the following items is a required enterprise-wide disclosure regarding external customers?
- A. The identity of any external customer providing 10% or more of a particular operating segment's revenue.
- B. The identity of any external customer considered to be "major" by management.
- C. The fact that transactions with a particular external customer constitute more than 10% of the total enterprise revenues.
- D. Information on major customers is not required in segment reporting.
Deficits accumulated during the development stage of a company should be:
- A. Capitalized and amortized over a five year period beginning when principal operations commence.
- B. Reported as organization costs.
- C. Reported as a part of stockholders' equity.
- D. Capitalized and written off in the first year of principal operations.
In which of the following situations should a company report a prior-period adjustment?
- A. A switch from the straight-line to double-declining balance method of depreciation.
- B. The scrapping of an asset prior to the end of its expected useful life.
- C. The correction of a mathematical error in the calculation of prior years' depreciation.
- D. A change in the estimated useful lives of fixed assets purchased in prior years.
In general, an enterprise preparing interim financial statements should:
- A. Allocate revenues and expenses evenly over the quarters, regardless of when they actually occurred.
- B. Use the same accounting principles followed in preparing its latest annual financial statements.
- C. Disregard permanent decreases in the market value of its inventory.
- D. Defer recognition of seasonal revenue.
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