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Admission Test Financial-Accounting-Reporting real answers - Certified Public Accountant (Financial Accounting & Reporting)

Financial-Accounting-Reporting
  • Exam Code: Financial-Accounting-Reporting
  • Exam Name: Certified Public Accountant (Financial Accounting & Reporting)
  • Updated: Jul 08, 2025
  • Q & A: 161 Questions and Answers
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Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:

1. During 1990, Fuqua Steel Co. had the following unusual financial events occur:
* Bonds payable were retired five years before their scheduled maturity, resulting in a $260,000 gain. Fuqua has frequently retired bonds early when interest rates declined significantly.
* A steel forming segment suffered $255,000 in losses due to hurricane damage. This was the fourth similar loss sustained in a 5-year period at that location.
* A component of Fuqua's operations, steel transportation, was sold at a net loss of $350,000.
This was Fuqua's first divestiture of one of its operating segments.
Before income taxes, what amount should be disclosed as the gain (loss) from extraordinary items in 1990?

A) $0
B) $(350,000)
C) $5,000
D) $(90,000)


2. Which of the following is true regarding the presentation of "comprehensive income."

A) Option B
B) Option D
C) Option C
D) Option A


3. The following costs were incurred by Griff Co., a manufacturer, during 1992:

What amount of these costs should be reported as general and administrative expenses for 1992?

A) $810,000
B) $260,000
C) $550,000
D) $635,000


4. 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) Predictive value.
B) Feedback value.
C) Representational faithfulness.
D) Reliability.


5. The following question is based on the following:
Vane Co.'s trial balance of income statement accounts for the year ended December 31, 2002, included the following:

Vane's income tax rate is 30%.
In Vane's 2002 multiple-step income statement, what amount should Vane report as income from continuing operations?

A) $126,000
B) $147,000
C) $140,000
D) $129,500


Solutions:

Question # 1
Answer: A
Question # 2
Answer: C
Question # 3
Answer: B
Question # 4
Answer: A
Question # 5
Answer: C

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