If you try on it, you will find that the operation systems of the FAR Questions exam questions we design have strong compatibility. So the running totally has no problem. And you can free download the demos of the FAR Questions practice engine to have a experience before payment. And our FAR Questionsstudy materials have three formats which help you to read, test and study anytime, anywhere. This means with our products you can prepare for FAR Questions exam efficiently. We believe that if you purchase FAR Questions test guide from our company and take it seriously into consideration, you will gain a suitable study plan to help you to pass your exam in the shortest time.
AICPA Certification FAR After all, no one can steal your knowledge.
Our FAR - CPA Financial Accounting and Reporting Questions exam dumps will lead you to success! We believe that the trial version will help you a lot. If you are not certain whether the Exam FAR Syllabus prep guide from our company is suitable for you or not, so you are hesitate to buy and use our study materials.
Many people may have different ways and focus of study to pass FAR Questions exam in the different time intervals, but we will find that in real life, can take quite a long time to learn FAR Questions learning questions to be extremely difficult. You may be taken up with all kind of affairs, and sometimes you have to put down something and deal with the other matters for the latter is more urgent and need to be done immediately. With the help of our FAR Questions training guide, your dream won’t be delayed anymore.
Our AICPA FAR Questions exam torrent carries no viruses.
If you are not sure whether our FAR Questions exam braindumps are suitable for you, you can request to use our trial version. Of course, FAR Questions learning materials produced several versions of the product to meet the requirements of different users. You can also ask to try more than one version and choose the one that suits you best. And we have three different versions Of our FAR Questions study guide: the PDF, the Software and the APP online.
As long as you study our FAR Questions training engine and followe it step by step, we believe you will achieve your dream easily. Every question from our FAR Questions study materials is carefully elaborated and the content of our FAR Questions exam questions involves the professional qualification certificate examination.
FAR PDF DEMO:
QUESTION NO: 1
Rock Co.'s financial statements had the following balances at December 31:
What amount should Rock report as comprehensive income for the year ended December 31?
A. $400,000
B. $420,000
C. $520,000
D. $570,000
Answer: C
Explanation:
Choice "c" is correct. Comprehensive Income includes all items included in "Net Income" plus "Other
Comprehensive Income" items. Since the $50,000 extraordinary gain is already included in Net
Income,
Comprehensive Income is:
QUESTION NO: 2
The summary of significant accounting policies should disclose the:
A. Maturity dates of noncurrent debts.
B. Terms for convertible debt to be exchanged for common stock.
C. Concentration of credit risk of all financial instruments by geographical region.
D. Criteria for determining which investments are treated as cash equivalents.
Answer: D
Explanation:
Choice "d" is correct. The criteria for determining which investments are treated as cash equivalents would be part of the summary of significant accounting policies. Choice "a" is incorrect. The maturity dates of noncurrent debts are required disclosures, but are not a part of the summary of significant accounting policies. Choice "b" is incorrect. The terms for convertible debt to be exchanged for common
stock are not accounting policies; they would be disclosed separately. Choice "c" is incorrect. The concentration of credit risk of all financial instruments by geographic region may be a required segment
disclosure, especially for financial institutions. However, it would not be a part of the summary of significant accounting policies.
QUESTION NO: 3
How should the effect of a change in accounting estimate be accounted for?
A. By restating amounts reported in financial statements of prior periods.
B. By reporting pro forma amounts for prior periods.
C. As a prior period adjustment to beginning retained earnings.
D. In the period of change and future periods if the change affects both.
Answer: D
Explanation:
Choice "d" is correct, a "change in accounting estimate" affects only the current and subsequent
(future)
periods, if the change affects both. It does not affect "prior periods," nor "retained earnings." Choice
"a" is
incorrect. Restating prior years' financial statements is required when comparative financial statements
are shown for prior period adjustments of "corrections of errors," "changes in entities," and changes in
accounting principle. Choices "b" and "c" are incorrect. A "change in accounting estimate" does not affect
prior periods.
QUESTION NO: 4
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed, working closely with
Quo's president and outside accountants, made changes in accounting policies, corrected several errors
dating from 1992 and before, and instituted new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992 financial statements.
This question represents one of Quo's transactions. List B represents the general accounting treatment
required for these transactions. These treatments are:
. Cumulative effect approach - Include the cumulative effect of the adjustment resulting from the accounting change or error correction in the 1993 financial statements, and do not restate the 1992 financial statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial statements and adjust
1 992 beginning retained earnings if the error or change affects a period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but do not restate
1 992 financial statements.
Item to Be Answered
Quo changed from FIFO to average cost to account for its raw materials and work in process inventories.
List B (Select one)
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: B
Explanation:
Choice "B" is correct. A change in accounting principle should be shown in the retained earnings statement of the earliest year presented as an adjustment of the beginning balance. All prior year financial
statements are recast.
QUESTION NO: 5
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed, working closely with
Quo's president and outside accountants, made changes in accounting policies, corrected several errors
dating from 1992 and before, and instituted new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992 financial statements.
This question represents one of Quo's transactions. List A represents possible clarifications of these transactions as: a change in accounting principle, a change in accounting estimate, a correction of an error in previously presented financial statements, or neither an accounting change nor an accounting
error.
Item to Be Answered
As a result of a production breakthrough, Quo determined that manufacturing equipment previously depreciated over 15 years should be depreciated over 20 years.
List A (Select one)
A. Change in accounting principal.
B. Change in accounting estimate.
C. Correction of an error in previously presented financial statements.
D. Neither an accounting change nor an accounting error.
Answer: B
Explanation:
Choice "b" is correct. Change in lives of fixed assets is a change in accounting estimate.
SAP C_ARCIG_2404 training materials are not only the domestic market, but also the international high-end market. Through all these years' experience, our SAP C_HRHPC_2405 training materials are becoming more and more prefect. And you can free download the demos of the SAP C_LCNC_2406 study guide to check it out. AACE International CCP - All exams from different suppliers will be easy to handle. Secondly software version does not limit to the number of installed computers, and it simulates the real SAP P_BTPA_2408 actual test guide, but it can only run on Windows operating system.
Updated: May 26, 2022