We have money refund policy to ensure your interest in case the failure of FAR Online Tests actual test. FAR Online Tests is the authentic study guides with the latest exam material which can help you solve all the difficulties in the actual test. Our FAR Online Tests free demo is available for all of you. Our FAR Online Tests training materials have won great success in the market. Tens of thousands of the candidates are learning on our FAR Online Tests practice engine. Our website always trying to bring great convenience to our candidates who are going to attend the FAR Online Tests practice test.
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 Online Tests software on PC. So we are bravely breaking the stereotype of similar content materials of the exam, but add what the exam truly tests into our Latest FAR Questions exam guide. So we have adamant attitude to offer help rather than perfunctory attitude.
Our FAR Online Tests practice materials are really reliable. In a word, our FAR Online Tests exam questions have built good reputation in the market. We sincerely hope that you can try our FAR Online Tests learning quiz.
AICPA FAR Online Tests - 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 Online Tests 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 Online Tests 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.
Being dedicated to these practice materials painstakingly and pooling useful points into our FAR Online Tests exam materials with perfect arrangement and scientific compilation of messages, our FAR Online Tests practice materials can propel the exam candidates to practice with efficiency. Our experts are constantly looking for creative way to immortalize our FAR Online Tests actual exam in this line.
FAR PDF DEMO:
QUESTION NO: 1
Conceptually, interim financial statements can be described as emphasizing:
A. Timeliness over reliability.
B. Reliability over relevance.
C. Relevance over comparability.
D. Comparability over neutrality.
Answer: A
Explanation:
Choice "a" is correct. Interim financial statements emphasize timeliness (an element of relevance) by providing financial information based on actual performance to date and estimates prior to year end.
Information must be available when it is needed to be useful. Reliability is impeded by the extensive use
of estimates; however, the lag until verifiability is obtained detracts from usefulness. SFAC 2 para. 56
Choice "b" is incorrect. Relevance (particularly timeliness) of information in interim financial statements is
emphasized more than reliability. Reliability is impeded by the extensive use of estimates in interim data.
Choice "c" is incorrect. Since comparability is a secondary quality of information, there should be no need
to trade off comparability for relevance (a primary quality). Choice "d" is incorrect. Neutrality is an element
of reliability (a primary quality of information. There should be NO need for a trade-off for comparability
over neutrality.
QUESTION NO: 2
According to the FASB conceptual framework, the process of reporting an item in the financial statements
of an entity is:
A. Allocation.
B. Matching.
C. Realization.
D. Recognition.
Answer: D
Explanation:
Choice "d" is correct. Recognition is the process of recording an item in the financial statements of an entity. SFAC 5 para. 6 Choice "a" is incorrect. Allocation is the accounting process of assigning or distributing an amount according to a plan or a formulA. SFAC 6 para. 142 Choice "b" is incorrect.
Matching of costs and revenues is simultaneous or combined recognition of the revenues and expenses
that result directly and jointly from the same transactions or other events. SFAC 6 para. 146 Choice
"c" is
incorrect. Realization is the process of converting noncash resources and rights into money. SFAC 6 para.
1 43
QUESTION NO: 3
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
1 990?
A. $0
B. $5,000
C. $(90,000)
D. $(350,000)
Answer: A
Explanation:
Choice "a" is correct. $0. Note: The sale of the steel transportation component resulted in a loss from discontinued operations and is reported after "income from continuing operations." The steel forming
segment's hurricane damage (4th in 5 years) of $255,000 is only "unusual in nature" and does not occur
infrequently, therefore, it is not an "extraordinary item," and should be reported separately as a component of "income from continuing operations." The retirement of debt, although unusual, is not infrequent for the company; therefore, the gain does not qualify for classification as an extraordinary item
per APBO No. 30 (and SFAS No. 145).
QUESTION NO: 4
In general, an enterprise preparing interim financial statements should:
A. Defer recognition of seasonal revenue.
B. Disregard permanent decreases in the market value of its inventory.
C. Allocate revenues and expenses evenly over the quarters, regardless of when they actually occurred.
D. Use the same accounting principles followed in preparing its latest annual financial statements.
Answer: D
Explanation:
Choice "d" is correct. Generally accepted accounting principles that were used in the most recent annual
report of an enterprise should be applied to interim financial statements of the current year, unless a change in accounting principle is adopted in the current year.
Choices "a", "b", and "c" are incorrect, per above.
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
Quo manufactures heavy equipment to customer specifications on a contract basis. On the basis that it is
preferable, accounting for these long-term contracts was switched from the completed-contract method to
the percentage-of-completion method.
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: A
Explanation:
Choice "a" is correct. Switching from the completed-contract method of accounting to the percentage-of
completion method is a "change in accounting principle."
ISACA CISM - 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. EMC D-PSC-MN-01 exam questions can fuel your speed and help you achieve your dream. So without doubt, our Microsoft DP-100 exam questions are always the latest and valid. Amazon DOP-C02 - It is easy for you to pass the exam because you only need 20-30 hours to learn and prepare for the exam. So if you are in a dark space, our EMC D-AV-DY-23 exam questions can inspire you make great improvements.
Updated: May 26, 2022