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Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Financial Reporting | 30% - 40% | - General Purpose Financial Reporting
|
| Select Balance Sheet Accounts | 30% - 40% | - Assets, Liabilities and Equity
|
| Select Transactions | 25% - 35% | - Accounting and Reporting Transactions
|
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
Which of the following is true regarding the presentation of "comprehensive income."
- A. Option B
- B. Option A
- C. Option C
- D. Option D
Correct Answer: C 🗳️
Belle Co. determined after four years that the estimated useful life of its labeling machine should be 10 years rather than 12 years. The machine originally cost $46,000 and had an estimated salvage value of $1,000. Belle uses straight-line depreciation. What amount should Belle report as depreciation expense for the current year?
- A. $3,200
- B. $5,000
- C. $3,750
- D. $4,500
Correct Answer: B 🗳️
Opto Co. is a publicly-traded, consolidated enterprise reporting segment information. Which of the following items is a required enterprise-wide disclosure regarding external customers?
- A. Information on major customers is not required in segment reporting.
- B. The identity of any external customer considered to be "major" by management.
- C. The identity of any external customer providing 10% or more of a particular operating segment's revenue.
- D. The fact that transactions with a particular external customer constitute more than 10% of the total enterprise revenues.
Correct Answer: D 🗳️
The following information pertains to Aria Corp. and its divisions for the year ended December 31, 1988:
Aria and all of its divisions are engaged solely in manufacturing operations. Aria has a reportable segment if that segment's revenue exceeds:
- A. $260,000
- B. $204,000
- C. $264,000
- D. $200,000
Correct Answer: A 🗳️
Which of the following qualifies as an operating segment?
- A. North American segment, whose assets are 12% of the company's assets of all segments, and management reports to the chief operating officer.
- B. Eastern Europe segment, which reports its results directly to the manager of the European division, and has 20% of the company's assets, 12% of revenues, and 11% of profits.
- C. Corporate headquarters, which oversees $1 billion in sales for the entire company.
- D. South American segment, whose results of operations are reported directly to the chief operating officer, and has 5% of the company's assets, 9% of revenues, and 8% of the profits.
Correct Answer: A 🗳️
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