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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Select Balance Sheet Accounts | 30% - 40% | - Assets, Liabilities and Equity
|
| Topic 2: Financial Reporting | 30% - 40% | - General Purpose Financial Reporting
|
| Topic 3: Select Transactions | 25% - 35% | - Accounting and Reporting Transactions
|
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
Chester Corp. was a development stage enterprise from its inception on September 1, 1987 to December 31, 1988. The following information was taken from Chester's accounting records for the above period:
For the period September 1, 1987 to December 31, 1988, what amount should Chester report as net loss?
- A. $150,000
- B. $350,000
- C. $450,000
- D. $ 50,000
Correct Answer: C 🗳️
Terra Co.'s total revenues from its three operating segments were as follows:
Which operating segment(s) is (are) deemed to be reportable segments?
- A. None.
- B. Lion only.
- C. Lion and Monk only.
- D. Lion, Monk, and Nevi.
Correct Answer: D 🗳️
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. $875,000
- D. $975,000
Correct Answer: A 🗳️
Which of the following should be disclosed for each reportable operating segment of an enterprise?
- A. Option D
- B. Option A
- C. Option C
- D. Option B
Correct Answer: B 🗳️
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
The equipment that Quo manufactures is sold with a five-year warranty. Because of a production breakthrough, Quo reduced its computation of warranty costs from 3% of sales to 1% of sales.
List A (Select one)
- A. Correction of an error in previously presented financial statements.
- B. Change in accounting estimate.
- C. Neither an accounting change nor an accounting error.
- D. Change in accounting principal.
Correct Answer: B 🗳️
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