Our test engine is designed to make you feel FAR Test Review exam simulation and ensure you get the accurate answers for real questions. You can instantly download the FAR Test Review free demo in our website so you can well know the pattern of our test and the accuracy of our FAR Test Review pass guide. It allows you to study anywhere and anytime as long as you download our FAR Test Review practice questions. If client uses the PDF version of FAR Test Review exam questions, they can download the demos freely. If clients feel good after trying out our demos they will choose the full version of the test bank to learn our FAR Test Review study materials. Some candidates may purchase our FAR Test Review software test simulator for their companies.
AICPA Certification FAR Moreover, we have Demos as freebies.
AICPA Certification FAR Test Review - CPA Financial Accounting and Reporting Though the content of these three versions is the same, the displays have their different advantages. We believe that you will like our products. According to the different demands from customers, the experts and professors designed three different versions for all customers.
As we will find that, get the test FAR Test Review certification, acquire the qualification of as much as possible to our employment effect is significant. But how to get the test FAR Test Review certification didn't own a set of methods, and cost a lot of time to do something that has no value. With our FAR Test Review exam Practice, you will feel much relax for the advantages of high-efficiency and accurate positioning on the content and formats according to the candidates’ interests and hobbies.
AICPA FAR Test Review - Just be confident to face new challenge!
As we enter into such a competitive world, the hardest part of standing out from the crowd is that your skills are recognized then you will fit into the large and diverse workforce. The FAR Test Review certification is the best proof of your ability. However, it’s not easy for those work officers who has less free time to prepare such an FAR Test Review exam. Here comes FAR Test Review exam materials which contain all of the valid FAR Test Review study questions. You will never worry about the FAR Test Review exam.
In the meantime, all your legal rights will be guaranteed after buying our FAR Test Review study materials. For many years, we have always put our customers in top priority.
FAR PDF DEMO:
QUESTION NO: 1
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: 2
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: 3
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: 4
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: 5
The effect of a material transaction that is infrequent in occurrence but not unusual in nature should be
presented separately as a component of income from continuing operations when the transaction results in a:
A. Option A
B. Option B
C. Option C
D. Option D
Answer: A
Explanation:
Choice "a" is correct, Yes - Yes. A material transaction that is "infrequent in occurrence" but not
"unusual
in nature" should be presented separately as a component of "income from continuing operations" when
the transaction results in a gain or loss.
So we never stop the pace of offering the best services and IBM S2000-020 practice materials for you. Even the Salesforce Sales-Cloud-Consultant test syllabus is changing every year; our experts still have the ability to master the tendency of the important knowledge as they have been doing research in this career for years. Our Microsoft AZ-140 study materials provide a promising help for your Microsoft AZ-140 exam preparation whether newbie or experienced exam candidates are eager to have them. If you are preparing for the exam by the guidance of the Huawei H19-308_V4.0 study practice question from our company and take it into consideration seriously, you will absolutely pass the exam and get the related certification. With our IBM C1000-101-KR study guide, not only that you can pass you exam easily and smoothly, but also you can have a wonderful study experience based on the diversed versions of our IBM C1000-101-KR training prep.
Updated: May 26, 2022