Our FAR Sample Questions study materials concentrate the essence of exam materials and seize the focus information to let the learners master the key points. And our FAR Sample Questions learning materials provide multiple functions and considerate services to help the learners have no inconveniences to use our product. We guarantee to the clients if only they buy our study materials and learn patiently for some time they will be sure to pass the FAR Sample Questions test with few failure odds. If you want to get security that you can pass AICPA FAR Sample Questions certification exam at the first attempt, Omgzlook AICPA FAR Sample Questions exam dumps is your unique and best choice. It is the dumps that you can't help praising it. The FAR Sample Questions test materials have a biggest advantage that is different from some online learning platform which has using terminal number limitation, the FAR Sample Questions quiz torrent can meet the client to log in to learn more, at the same time, the user can be conducted on multiple computers online learning, greatly reducing the time, and people can use the machine online of FAR Sample Questions test prep more conveniently at the same time.
The way to pass the FAR Sample Questions actual test is diverse.
It is known to us that practicing the incorrect questions is very important for everyone, so our FAR - CPA Financial Accounting and Reporting Sample Questions exam question provide the automatic correcting system to help customers understand and correct the errors. FAR Reliable Cram Materials online test engine can simulate the actual test, which will help you familiar with the environment of the FAR Reliable Cram Materials real test. The FAR Reliable Cram Materials self-assessment features can bring you some convenience.
The three versions of our FAR Sample Questions exam questions are PDF & Software & APP version for your information. Each one has its indispensable favor respectively. All FAR Sample Questions training engine can cater to each type of exam candidates’ preferences.
You final purpose is to get the AICPA FAR Sample Questions certificate.
For a long time, high quality is our FAR Sample Questions exam questions constantly attract students to participate in the use of important factors, only the guarantee of high quality, to provide students with a better teaching method, and at the same time the FAR Sample Questions practice quiz brings more outstanding teaching effect. Our high-quality FAR Sample Questions} learning guide help the students know how to choose suitable for their own learning method, our FAR Sample Questions study materials are a very good option.
More importantly, it is evident to all that the FAR Sample Questions training materials from our company have a high quality, and we can make sure that the quality of our products will be higher than other study materials in the market. If you want to pass the FAR Sample Questions exam and get the related certification in the shortest time, choosing the FAR Sample Questions training materials from our company will be in the best interests of all people.
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."
All the preparation material reflects latest updates in Cisco 300-415 certification exam pattern. SAP C-THR87-2405 - As is known to us, where there is a will, there is a way. ITIL ITIL-4-Foundation - This innovative facility provides you a number of practice questions and answers and highlights the weak points in your learning. Dell D-PWF-DY-A-00 - At the same time, you will have more income to lead a better life and develop your life quality. SAP C_S4EWM_2023 - Our behavior has been strictly ethical and responsible to you, which is trust worthy.
Updated: May 26, 2022