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  • Exam Code: Financial-Accounting-Reporting
  • Exam Name: Certified Public Accountant (Financial Accounting & Reporting)
  • No. of Questions: 161 Questions and Answers
  • Updated: Sep 10, 2026

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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:

SectionObjectives
Topic 1: Conceptual Framework and Financial Reporting- Financial statement presentation
- Disclosure requirements
- FASB conceptual framework
Topic 2: Specialized Accounting Topics- Accounting changes and error corrections
- Pensions and post-employment benefits
- Foreign currency transactions
Topic 3: Equity, Investments, and Business Combinations- Stockholders' equity
- Business combinations and consolidations
- Bonds and debt instruments
Topic 4: Governmental and Not-for-Profit Accounting- Governmental fund accounting
- Not-for-profit financial reporting
Topic 5: Financial Statements and Transactions- Income statement and comprehensive income
- Balance sheet and statement of cash flows
- Revenue recognition (ASC 606)
Topic 6: Assets and Liabilities Accounting- Cash, receivables, and inventory
- Fixed assets and intangible assets
- Liabilities and contingencies
- Leases (ASC 842)

Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:

During 20X5, Dale Corp. made the following accounting changes:

What amount should be shown in the 20X5 retained earnings statement as an adjustment to the beginning balance?

  • A. $128,000
  • B. $0
  • C. $30,000
  • D. $98,000
Answer: D

In September 1996, Koff Co.'s operating plant was destroyed by an earthquake. Earthquakes are rare in the area in which the plant was located. The portion of the resultant loss not covered by insurance was $700,000. Koff's income tax rate for 1996 was 40%. In its 1996 income statement, what amount should Koff report as extraordinary loss?

  • A. $700,000
  • B. $0
  • C. $280,000
  • D. $420,000
Answer: D

Which of the following qualifies as an operating segment?

  • A. 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.
  • 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. Corporate headquarters, which oversees $1 billion in sales for the entire company.
  • D. 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.
Answer: B

Grum Corp., a publicly-owned corporation, is subject to the requirements for segment reporting. In its income statement for the year ended December 31, 1991, Grum reported revenues of $50,000,000, operating expenses of $47,000,000, and net income of $3,000,000. Operating expenses include payroll costs of $ 15,000,000. Grum's combined identifiable assets of all industry segments at December 31, 1991, were $40,000,000.
In its 1991 financial statements, Grum should disclose major customer data if sales to any single customer amount to at least:

  • A. $300,000
  • B. $4,000,000
  • C. $1,500,000
  • D. $5,000,000
Answer: D

For interim financial reporting, the computation of a company's second quarter provision for income taxes uses an effective tax rate expected to be applicable for the full fiscal year. The effective tax rate should reflect anticipated:

  • A. Option A
  • B. Option B
  • C. Option C
  • D. Option D
Answer: D

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