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Admission Test Financial-Accounting-Reporting Exam Overview:
| Certification Vendor: | AICPA / NASBA |
|---|---|
| Exam Name: | Certified Public Accountant (CPA) - Financial Accounting and Reporting (FAR) |
| Exam Number: | Admission-Test Financial-Accounting-Reporting |
| Real Exam Qty: | 50 Multiple-Choice Questions + 7 Task-Based Simulations |
| Exam Duration: | 240 minutes |
| Passing Score: | 75 |
| Available Languages: | English |
| Certificate Validity Period: | CPA Exam credits are generally valid within the jurisdiction's rolling credit window after passing |
| Related Certifications: | Certified Public Accountant (CPA) |
| Exam Format: | Multiple-Choice Questions (MCQ), Task-Based Simulations (TBS) |
| Exam Price: | USD 344.80 |
| Sample Questions: | Admission Test Financial-Accounting-Reporting Sample Questions |
| Exam Way: | Computer-based exam administered year-round at authorized Prometric testing centers and approved international testing locations. |
| Pre Condition: | Candidates must meet education and eligibility requirements established by the state board of accountancy where they apply for the CPA Examination. |
| Official Syllabus URL: | https://www.aicpa-cima.com/resources/article/learn-what-is-tested-on-the-cpa-exam |
Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Select Balance Sheet Accounts | 30% - 40% | - Assets, Liabilities and Equity
|
| Select Transactions | 25% - 35% | - Accounting and Reporting Transactions
|
| Financial Reporting | 30% - 40% | - General Purpose Financial Reporting
|
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
Question #1
In single period statements, which of the following should not be reflected as an adjustment to the opening balance of retained earnings?
- A. Effect of a decrease in the estimated useful life of depreciable equipment.
- B. Effect of a failure to provide for uncollectible accounts in the previous period.
- C. Cumulative effect of a change from LIFO to FIFO in valuing merchandise inventory.
- D. Cumulative effect of a change from the percentage of completion to the completed contract method of accounting for long-term construction projects.
Correct Answer: A 🗳️
Question #2
A statement of cash flows for a development stage enterprise:
- A. Shows only cumulative amounts from the enterprise's inception.
- B. Is the same as that of an established operating enterprise and, in addition, shows cumulative amounts from the enterprise's inception.
- C. Is not presented.
- D. Is the same as that of an established operating enterprise, but does not show cumulative amounts from the enterprise's inception.
Correct Answer: B 🗳️
Question #3
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. During the eight months ending August 31, 1992, by a weighted average of the purchases.
- B. As of January 1, 1992.
- C. As of August 31, 1992.
- D. During 1992 by a weighted average of the purchases.
Correct Answer: B 🗳️
Question #4
Reclassification adjustments must be shown in the financial statement that discloses comprehensive income:
- A. To show the tax effect of items of comprehensive income.
- B. To avoid double counting in comprehensive income items, which are currently displayed in net income.
- C. To avoid including transactions with shareholders in items of comprehensive income.
- D. To show what portion of comprehensive income is from the realization of current assets.
Correct Answer: B 🗳️
Question #5
What are the Statements of Financial Accounting Concepts intended to establish?
- A. The meaning of "Present fairly in accordance with generally accepted accounting principles."
- B. Generally accepted accounting principles in financial reporting by business enterprises.
- C. The objectives and concepts for use in developing standards of financial accounting and reporting.
- D. The hierarchy of sources of generally accepted accounting principles.
Correct Answer: C 🗳️
By Benjamin
