Since our company’s establishment, we have devoted mass manpower, materials and financial resources into FAR Latest Exam Simulator exam materials and until now, we have a bold idea that we will definitely introduce our FAR Latest Exam Simulator study materials to the whole world and make all people that seek fortune and better opportunities have access to realize their life value. Our FAR Latest Exam Simulator practice questions, therefore, is bound to help you pass though the FAR Latest Exam Simulator exam and win a better future. We deeply know that the pass rate is the most important. As is well known to us, our passing rate has been high; Ninety-nine percent of people who used our FAR Latest Exam Simulator real braindumps have passed their exams and get the certificates. But how to get the certificate has become a headache for many people.
AICPA Certification FAR You can totally rely on us!
FAR - CPA Financial Accounting and Reporting Latest Exam Simulator study engine is very attentive to provide a demo for all customers who concerned about our products, whose purpose is to allow customers to understand our product content before purchase. The download and install set no limits for the amount of the computers and the persons who use FAR Valid Mock Test test prep. So we provide the best service for you as you can choose the most suitable learning methods to master the FAR Valid Mock Test exam torrent.
If you have any questions after you buy our FAR Latest Exam Simulator study guide, you can always get thoughtful support and help by email or online inquiry. If you neeed any support, and we are aways here to help you. Our considerate service is not only reflected in the purchase process, but also reflected in the considerate after-sales assistance on our FAR Latest Exam Simulator exam questions.
You can ask anyone who has used AICPA FAR Latest Exam Simulator actual exam.
Our FAR Latest Exam Simulator exam quiz is unlike other exam materials that are available on the market, our FAR Latest Exam Simulator study dumps specially proposed different versions to allow you to learn not only on paper, but also to use mobile phones to learn. This greatly improves the students' availability of fragmented time. So you can achieve your FAR Latest Exam Simulator certification easily without disrupting your daily routine. And we will give you 100% success guaranteed on the FAR Latest Exam Simulator training guide.
In short, you will find the convenience and practicality of our FAR Latest Exam Simulator quiz guide in the process of learning. We will also continue to innovate and improve functions to provide you with better services.
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."
We are convinced that our Google Google-Workspace-Administrator exam questions can help you gain the desired social status and thus embrace success. Lpi 102-500 - Everybody knows that in every area, timing counts importantly. SAP C_TS462_2022-KR - The development of science and technology makes our life more comfortable and convenient, which also brings us more challenges. Our SAP C-THR70-2404 exam questions have been widely acclaimed among our customers, and the good reputation in industry prove that choosing our study materials would be the best way for you, and help you gain the SAP C-THR70-2404 certification successfully. Our Google Professional-Cloud-Architect learning questions engage our working staff in understanding customers’ diverse and evolving expectations and incorporate that understanding into our strategies, thus you can 100% trust our Google Professional-Cloud-Architect exam engine.
Updated: May 26, 2022