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Admission Test Certified Public Accountant (Financial Accounting & Reporting) : Financial-Accounting-Reporting Exam
- Exam Code: Financial-Accounting-Reporting
- Exam Name: Certified Public Accountant (Financial Accounting & Reporting)
- Updated: Nov 04, 2026
- Q & A: 161 Questions and Answers
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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 Balance Sheet Accounts | 30% - 40% | - Assets, Liabilities and Equity
|
| Topic 3: Select Transactions | 25% - 35% | - Accounting and Reporting Transactions
|
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
Question #1
While preparing its 1991 financial statements, Dek Corp. discovered computational errors in its 1990 and 1989 depreciation expense. These errors resulted in overstatement of each year's income by $25,000, net of income taxes. The following amounts were reported in the previously issued financial statements:
Dek's 1991 net income is correctly reported at $180,000. Which of the following amounts should be reported as prior period adjustments and net income in Dek's 1991 and 1990 comparative financial statements?
- A. Option B
- B. Option D
- C. Option A
- D. Option C
Correct Answer: D 🗳️
Question #2
Thorpe Co.'s income statement for the year ended December 31, 1990, reported net income of $74,100. The auditor raised questions about the following amounts that had been included in net income:
The loss from the fire was an infrequent but not unusual occurrence in Thorpe's line of business.
Thorpe's December 31, 1990, income statement should report net income of:
- A. $66,100
- B. $87,000
- C. $65,000
- D. $81,600
Correct Answer: B 🗳️
Question #3
What is the purpose of information presented in notes to the financial statements?
- A. To present management's responses to auditor comments.
- B. To provide recognition of amounts not included in the totals of the financial statements.
- C. To correct improper presentation in the financial statements.
- D. To provide disclosures required by generally accepted accounting principles.
Correct Answer: D 🗳️
Question #4
Income tax-basis financial statements differ from those prepared under GAAP in that income tax-basis financial statements:
- A. Include detailed information about current and deferred income tax liabilities.
- B. Do not include nontaxable revenues and nondeductible expenses in determining income.
- C. Contain no disclosures about capital and operating lease transactions.
- D. Recognize certain revenues and expenses in different reporting periods.
Correct Answer: D 🗳️
Question #5
Tanker Oil Co., a development stage enterprise, incurred the following costs during its first year of operations:
Tanker had no revenue during its first year of operation. What amount may Tanker capitalize as organizational costs?
- A. $0
- B. $95,000
- C. $115,000
- D. $55,000
Correct Answer: A 🗳️
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