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

1. According to the FASB conceptual framework, which of the following is an essential characteristic of an asset?

A) An asset provides future benefits.
B) The claims to an asset's benefits are legally enforceable.
C) An asset is tangible.
D) An asset is obtained at a cost.

2. What are the Statements of Financial Accounting Concepts intended to establish?

A) The hierarchy of sources of 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 meaning of "Present fairly in accordance with generally accepted accounting principles."

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. The effect of a material transaction that is infrequent in occurrence but not unusual in nature should be presented separately as a component of income from continuing operations when the transaction results in a:

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

5. According to the FASB conceptual framework, comprehensive income includes which of the following?

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

Solutions: