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Admission Test Financial-Accounting-Reporting Actual Tests : Certified Public Accountant (Financial Accounting & Reporting)
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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Financial Reporting | 30% - 40% | - General Purpose Financial Reporting
|
| Topic 2: Select Transactions | 25% - 35% | - Accounting and Reporting Transactions
|
| Topic 3: Select Balance Sheet Accounts | 30% - 40% | - Assets, Liabilities and Equity
|
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
Conn Co. reported a retained earnings balance of $400,000 at December 31, 1991. In August 1992, Conn determined that insurance premiums of $60,000 for the three-year period beginning January 1, 1991, had been paid and fully expensed in 1991. Conn has a 30% income tax rate. What amount should Conn report as adjusted beginning retained earnings in its 1992 statement of retained earnings?
- A. $420,000
- B. $442,000
- C. $428,000
- D. $440,000
Correct Answer: C 🗳️
In Baer Food Co.'s 1990 single-step income statement, the section titled "Revenues" consisted of the following:
In the revenues section of its 1990 income statement, Baer Food should have reported total revenues of:
- A. $216,300
- B. $203,700
- C. $215,400
- D. $201,900
Correct Answer: D 🗳️
Which of the following is true regarding the comparison of managerial to financial accounting?
- A. The emphasis on managerial accounting is relevance and the emphasis on financial accounting is timeliness.
- B. Managerial accounting has a past focus and financial accounting has a future focus.
- C. Managerial accounting need not follow generally accepted accounting principles (GAAP) while financial accounting must follow them.
- D. Managerial accounting is generally more precise.
Correct Answer: C 🗳️
Which of the following qualifies as an operating segment?
- A. Corporate headquarters, which oversees $1 billion in sales for the entire company.
- B. North American segment, whose assets are 12% of the company's assets of all segments, and management reports to the chief operating officer.
- C. Eastern Europe segment, which reports its results directly to the manager of the European division, and has 20% of the company's assets, 12% of revenues, and 11% of profits.
- D. South American segment, whose results of operations are reported directly to the chief operating officer, and has 5% of the company's assets, 9% of revenues, and 8% of the profits.
Correct Answer: B 🗳️
On August 31, 1992, Harvey Co. decided to change from the FIFO periodic inventory system to the weighted average periodic inventory system. Harvey is on a calendar year basis. The cumulative effect of the change is determined:
- A. As of August 31, 1992.
- B. During the eight months ending August 31, 1992, by a weighted average of the purchases.
- C. As of January 1, 1992.
- D. During 1992 by a weighted average of the purchases.
Correct Answer: C 🗳️
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