We are confident that your future goals will begin with this successful exam. So choosing our FAR Test Format training materials is a wise choice. Our FAR Test Formatpractice materials will provide you with a platform of knowledge to help you achieve your dream. As one of the most important exam in AICPA certification exam, the certificate of AICPA FAR Test Format will give you benefits. And you must not miss the opportunity to pass FAR Test Format test successfully. Considering your practical constraint and academic requirements of the FAR Test Format exam preparation, you may choose the FAR Test Format practice materials with following traits.
Our FAR Test Format exam materials have plenty of advantages.
AICPA Certification FAR Test Format - CPA Financial Accounting and Reporting You can install it to as many computers as you need as long as the computer is in Windows system. Repeated attempts will sharpen your minds. Maybe our Test FAR Online learning quiz is suitable for you.
We have enough confidence in our products, so we can give a 100% refund guarantee to our customers. FAR Test Format exam questions promise that if you fail to pass the exam successfully after purchasing our product, we are willing to provide you with a 100% full refund. CPA Financial Accounting and Reporting exam tests are a high-quality product recognized by hundreds of industry experts.
AICPA FAR Test Format - Please make a decision quickly.
Today, in an era of fierce competition, how can we occupy a place in a market where talent is saturated? The answer is a certificate. What the certificate main? All kinds of the test FAR Test Format certification, prove you through all kinds of qualification certificate, it is not hard to find, more and more people are willing to invest time and effort on the FAR Test Format exam guide, because get the test FAR Test Format certification is not an easy thing, so, a lot of people are looking for an efficient learning method. And here, fortunately, you have found the FAR Test Format exam braindumps, a learning platform that can bring you unexpected experiences.
The product of Omgzlook not only can 100% guarantee you to pass the exam, but also can provide you a free one-year update service. If you choose Omgzlook, success is not far away for you.
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."
So do not hesitate and buy our SAP C-C4H320-34 preparation exam, you will benefit a lot from our products. IAPP AIGP - Many ambitious IT professionals want to make further improvements in the IT industry and be closer from the IT peak. EMC D-PST-MN-A-24 - Each format has distinct strength and shortcomings. You can free download part of Omgzlook's exercises and answers about AICPA certification Microsoft DP-300-KR exam as a try, then you will be more confident to choose our Omgzlook's products to prepare your AICPA certification Microsoft DP-300-KR exam. App/online version of Microsoft DP-420 training materials can be suitable to all kinds of equipment or digital devices.
Updated: May 26, 2022