Our IT professionals have made their best efforts to offer you the latest FAR Latest Demo study guide in a smart way for the certification exam preparation. With the help of our FAR Latest Demo dumps collection, all level of candidates can grasp the key content of the real exam and solve the difficulty of FAR Latest Demo real questions easily. The most important is that our test engine enables you practice FAR Latest Demo exam pdf on the exact pattern of the actual exam. Passing a FAR Latest Demo exam to get a certificate will help you to look for a better job and get a higher salary. If you are tired of finding a high quality study material, we suggest that you should try our FAR Latest Demo exam prep. Our experts written the accurate FAR Latest Demo test answers for exam preparation and created the study guideline for our candidates.
AICPA Certification FAR There is no doubt that you can get a great grade.
You can also try the simulated exam environment with FAR - CPA Financial Accounting and Reporting Latest Demo software on PC. So we have adamant attitude to offer help rather than perfunctory attitude. All Reliable Exam FAR Objectives Pdf test prep is made without levity and the passing rate has up to 98 to 100 percent now.
But we have successfully done that. Our FAR Latest Demo practice materials are really reliable. In a word, our FAR Latest Demo exam questions have built good reputation in the market.
AICPA FAR Latest Demo - It is very easy and convenient to use and find.
As the employment situation becoming more and more rigorous, it’s necessary for people to acquire more FAR Latest Demo skills and knowledge when they are looking for a job. Enterprises and institutions often raise high acquirement for massive candidates, and aim to get the best quality talents. Thus a high-quality FAR Latest Demo certification will be an outstanding advantage, especially for the employees, which may double your salary, get you a promotion. So choose us, choose a brighter future.
Our experts are constantly looking for creative way to immortalize our FAR Latest Demo actual exam in this line. Their masterpieces are instrumental to offer help and improve your performance in the real exam.
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.
Google Professional-Cloud-Architect - There is an old saying goes, good memory is inferior to sodden ability to write, so we believe that it is a highly productive way for you to memory the knowledge point and review the reference books more effectively. Microsoft AI-900-CN exam questions can fuel your speed and help you achieve your dream. To keep with such an era, when new knowledge is emerging, you need to pursue latest news and grasp the direction of entire development tendency, our SAP C_ARSOR_2404 training questions have been constantly improving our performance and updating the exam bank to meet the conditional changes. You may worry there is little time for you to learn the IBM C1000-182 study tool and prepare the exam because you have spent your main time and energy on your most important thing such as the job and the learning and can’t spare too much time to learn. So if you are in a dark space, our SAP C-ARCON-2404 exam questions can inspire you make great improvements.
Updated: May 26, 2022