It doesn’t matter if it's your first time to attend FAR Test Guide practice test or if you are freshman in the IT certification test, our latest FAR Test Guide dumps guide will boost you confidence to face the challenge. Our dumps collection will save you much time and ensure you get high mark in FAR Test Guide actual test with less effort. Come and check the free demo in our website you won’t regret it. Our questions and answers will not only allow you effortlessly through the exam first time, but also can save your valuable time. Omgzlook AICPA FAR Test Guide exam questions and answers provide you test preparation information with everything you need. Omgzlook is the leading provider of its practice exams, study guides and online learning courses, which may can help you.
Our FAR Test Guide latest study guide can help you.
AICPA Certification FAR Test Guide - CPA Financial Accounting and Reporting To encounter Omgzlook, you will encounter the best training materials. Most returned customers said that our FAR New Practice Questions dumps pdf covers the big part of main content of the certification exam. Questions and answers from our FAR New Practice Questions free download files are tested by our certified professionals and the accuracy of our questions are 100% guaranteed.
If you are tired of preparing AICPA FAR Test Guide exam, you can choose Omgzlook AICPA FAR Test Guide certification training materials. Because of its high efficiency, you can achieve remarkable results. Omgzlook helped many people taking IT certification exam who thought well of our exam dumps.
We have the complete list of popular AICPA FAR Test Guide exams.
Actually, FAR Test Guide exam really make you anxious. You may have been suffering from the complex study materials, why not try our FAR Test Guide exam software of Omgzlook to ease your burden. Our IT elite finally designs the best FAR Test Guide exam study materials by collecting the complex questions and analyzing the focal points of the exam over years. Even so, our team still insist to be updated ceaselessly, and during one year after you purchased FAR Test Guide exam software, we will immediately inform you once the FAR Test Guide exam software has any update.
In such a way, you will get a leisure study experience as well as a doomed success on your coming FAR Test Guide exam. After our unremitting efforts, FAR Test Guide learning guide comes in everybody's expectation.
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.
Every version of SAP C_C4H320_34 study materials that we provide to you has its own advantage: the PDF version has no equipment limited, which can be read anywhere; the online version can use on any electronic equipment there is network available; the software version can simulate the real SAP C_C4H320_34 exam environment to let you have more real feeling to SAP C_C4H320_34 real exam, besides the software version can be available installed on unlimited number devices. By passing the exams multiple times on practice test software, you will be able to pass the real Huawei H31-311_V2.5 test in the first attempt. You will get the most valid and best useful CompTIA CAS-004 study material with a reasonable price. SAP C_CPI_2404 - So you can relay on us to success and we won't let you down! Cisco 300-710 is the authentic study guides with the latest exam material which can help you solve all the difficulties in the actual test.
Updated: May 26, 2022