And all the warm feedback from our clients proved our strength, you can totally relay on us with our FAR Reliable Study Questions Book practice quiz! We are professional in this career to help all our worthy customers to obtain the FAR Reliable Study Questions Book certification for years. You can get prepared with our FAR Reliable Study Questions Book exam materials only for 20 to 30 hours before you go to attend your exam. You can enjoy 365 days free update after purchase of our FAR Reliable Study Questions Book exam torrent. About the updated AICPA study material, our system will send the latest one to your payment email automatically as soon as the FAR Reliable Study Questions Book updated. By using our FAR Reliable Study Questions Book preparation materials, we are sure you will pass your exam smoothly and get your dreamed certification.
AICPA Certification FAR Never feel sorry to invest yourself.
You can much more benefited form our FAR - CPA Financial Accounting and Reporting Reliable Study Questions Book study guide. To choose us is to choose success! It is an incredible opportunity among all candidates fighting for the desirable exam outcome to have our FAR Online Tests practice materials.
The FAR Reliable Study Questions Book prep torrent we provide will cost you less time and energy. You only need relatively little time to review and prepare. After all, many people who prepare for the FAR Reliable Study Questions Book exam, either the office workers or the students, are all busy.
AICPA FAR Reliable Study Questions Book - We're definitely not exaggerating.
Combined with your specific situation and the characteristics of our FAR Reliable Study Questions Book exam questions, our professional services will recommend the most suitable version of FAR Reliable Study Questions Book study materials for you. We introduce a free trial version of the FAR Reliable Study Questions Book learning guide because we want users to see our sincerity. FAR Reliable Study Questions Book exam prep sincerely hopes that you can achieve your goals and realize your dreams.
We always strictly claim for our FAR Reliable Study Questions Book study materials must be the latest version, to keep our study materials up to date, we constantly review and revise them to be at par with the latest AICPA syllabus for FAR Reliable Study Questions Book exam. This feature has been enjoyed by over 80,000 takes whose choose our study materials.
FAR PDF DEMO:
QUESTION NO: 1
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: 2
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: 3
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: 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 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."
QUESTION NO: 5
Which of the following should be disclosed for each reportable operating segment of an enterprise?
A. Option A
B. Option B
C. Option C
D. Option D
Answer: A
Explanation:
Choice "a" is correct. For each reportable segment of an enterprise, both profit or loss and total assets
should be disclosed. In disclosure questions, if you are not sure, disclose the most rather than the least.
Choice "b" is incorrect. For each reportable segment of an enterprise, both profit or loss and total assets
should be disclosed. Choice "c" is incorrect. For each reportable segment of an enterprise, both profit or
loss and total assets should be disclosed. Choice "d" is incorrect. For each reportable segment of an enterprise, both profit or loss and total assets should be disclosed.
Don't worry about channels to the best IBM C1000-168 study materials so many exam candidates admire our generosity of offering help for them. Our company's experts are daily testing our Salesforce Sales-Cloud-Consultant learning materials for timely updates. SAP C_C4H620_34 - All we do and the promises made are in your perspective. They have rich experience in predicating the Huawei H28-153_V1.0 exam. With years of experience dealing with ASQ CMQ-OE learning engine, we have thorough grasp of knowledge which appears clearly in our ASQ CMQ-OE study quiz with all the keypoints and the latest questions and answers.
Updated: May 26, 2022