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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:

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

1. Which of the following facts concerning fixed assets should be included in the summary of significant accounting policies?

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

2. During the first quarter of 1993, Tech Co. had income before taxes of $200,000, and its effective income tax rate was 15%. Tech's 1992 effective annual income tax rate was 30%, but Tech expects its 1993 effective annual income tax rate to be 25%. In its first quarter interim income statement, what amount of income tax expense should Tech report?

A) $30,000
B) $0
C) $50,000
D) $60,000

3. On March 15, 1992, Krol Co. paid property taxes of $90,000 on its office building for the calendar year 1992. On April 1, 1992, Krol paid $150,000 for unanticipated repairs to its office equipment. The repairs will benefit operations for the remainder of 1992. What is the total amount of these expenses that Krol should include in its quarterly income statement for the three months ended June 30, 1992?

A) $172,500
B) $72,500
C) $97,500
D) $37,500

4. YIV, Inc. is a multidivisional corporation, which has both intersegment sales and sales to unaffiliated customers. YIV should report segment financial information for each division meeting which of the following criteria?

A) Segment revenue is 10% or more of consolidated revenue.
B) Segment operating profit or loss is 10% or more of combined operating profit or loss of all company segments.
C) Segment operating profit or loss is 10% or more of consolidated profit or loss.
D) Segment revenue is 10% or more of combined revenue of all the company segments.

5. A planned volume variance in the first quarter, which is expected to be absorbed by the end of the fiscal period, ordinarily should be deferred at the end of the first quarter if it is:

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

Solutions: