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Updated: Aug 31, 2025
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Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
1. Dean Co. acquired 100% of Morey Corp. prior to 1989. During 1989, the individual companies included in their financial statements the following:
What amount should be reported as related party disclosures in the notes to Dean's 1989 consolidated financial statements?
A) $155,000
B) $175,000
C) $150,000
D) $330,000
2. According to the FASB's conceptual framework, the process of reporting an item in the financial statements of an entity is:
A) Matching.
B) Recognition.
C) Realization.
D) Allocation.
3. Chester Corp. was a development stage enterprise from its inception on September 1, 1987 to December 31, 1988. The following information was taken from Chester's accounting records for the above period:
For the period September 1, 1987 to December 31, 1988, what amount should Chester report as net loss?
A) $450,000
B) $ 50,000
C) $150,000
D) $350,000
4. The following costs were incurred by Griff Co., a manufacturer, during 1992:
What amount of these costs should be reported as general and administrative expenses for 1992?
A) $810,000
B) $550,000
C) $635,000
D) $260,000
5. In Baer Food Co.'s 1990 single-step income statement, the section titled "Revenues" consisted of the following:
In the revenues section of its 1990 income statement, Baer Food should have reported total revenues of:
A) $203,700
B) $216,300
C) $215,400
D) $201,900
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: D |
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