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Admission Test Financial-Accounting-Reporting exam : Certified Public Accountant (Financial Accounting & Reporting)
- Exam Code: Financial-Accounting-Reporting
- Exam Name: Certified Public Accountant (Financial Accounting & Reporting)
- Updated: Sep 15, 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 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:
Question #1
Hyde Corp. has three manufacturing divisions, each of which has been determined to be a reportable segment. In 1989, Clay division had sales of $3,000,000, which was 25% of Hyde's total sales, and had operating costs of $1,900,000, as reported to the CFO. In 1989, Hyde incurred operating costs of $500,000 that were not directly traceable to any of the divisions. In addition, Hyde incurred corporate interest expense of $300,000 in 1989. In reporting segment information, what amount should be shown as Clay's operating profit for 1989?
- A. $1,100,000
- B. $900,000
- C. $975,000
- D. $875,000
Correct Answer: A 🗳️
Question #2
In which of the following situations should a company report a prior-period adjustment?
- A. The scrapping of an asset prior to the end of its expected useful life.
- B. The correction of a mathematical error in the calculation of prior years' depreciation.
- C. A switch from the straight-line to double-declining balance method of depreciation.
- D. A change in the estimated useful lives of fixed assets purchased in prior years.
Correct Answer: B 🗳️
Question #3
On January 1, 20X1, Pell Corp. purchased a machine having an estimated useful life of 10 years and no salvage. The machine was depreciated by the double declining balance method for both financial statement and income tax reporting. On January 1, 20X6, Pell changed to the straight-line method for financial statement reporting but not for income tax reporting. Accumulated depreciation at December 31, 20X5, was $560,000. If the straight-line method had been used, the accumulated depreciation at December 31, 20X5, would have been $420,000. Pell's enacted income tax rate for 20X6 and thereafter is 30%. The amount shown in the 20X6 income statement for the cumulative effect of changing to the straight-line method should be:
- A. $0.
- B. $98,000 credit.
- C. $98,000 debit.
- D. $140,000 credit.
Correct Answer: A 🗳️
Question #4
Is the cumulative effect of an inventory pricing change on prior years earnings reported on the financial statements for
- A. Option A
- B. Option D
- C. Option C
- D. Option B
Correct Answer: D 🗳️
Question #5
According to the FASB conceptual framework, the quality of information that helps users increase the likelihood of correctly forecasting the outcome of past or present events is called:
- A. Representational faithfulness.
- B. Feedback value.
- C. Reliability.
- D. Predictive value.
Correct Answer: D 🗳️
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