CPA-Financial 시험 - AICPA실제시험문제와 답 - 163문항

Question No : 1

APB Opinion No. 28, Interim Financial Reporting, concluded that interim financial reporting should be viewed primarily in which of the following ways?

A.As useful only if activity is spread evenly throughout the year.
B.As if the interim period were an annual accounting period.
C.As reporting for an integral part of an annual period.
D.As reporting under a comprehensive basis of accounting other than GAA

정답:
Explanation:
Choice "c" is correct. Interim financial reporting should be viewed as reporting for an integral part of an annual period.
Choices "a", "b", and "d" are incorrect, per the above rule.

Question No : 2

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.

정답:
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 : 3

Which of the following is correct concerning financial statement disclosure of accounting policies?

A.Disclosures should be limited to principles and methods peculiar to the industry in which the company operates.
B.Disclosure of accounting policies is an integral part of the financial statements.
C.The format and location of accounting policy disclosures are fixed by generally accepted accounting principles.
D.Disclosures should duplicate details disclosed elsewhere in the financial statements.

정답:
Explanation:
Choice "b" is correct. Disclosure of accounting policies (and all other disclosure also) is an integral part of the financial statements.
Choice "a" is incorrect. For disclosure of accounting policies, disclosure should not be limited to principles and methods peculiar to the industry in which the company operates. All material accounting policies should be disclosed.
Choice "c" is incorrect. For disclosure of accounting policies, the format and location of accounting policies are not fixed by GAAP. Accounting policy disclosures are normally Note 1, but that is a (reasonable and very general) practice and not a "rule." It does make sense to disclose the "why" before the "what."
Choice "d" is incorrect. Disclosure of accounting policies should not duplicate details disclosed
elsewhere in the financial statements.
Interim Financial Reporting

Question No : 4

Which of the following must be included in a company's summary of significant accounting policies in the notes to the financial statements?

A.Description of current year equity transactions.
B.Summary of long-term debt outstanding.
C.Schedule of fixed assets.
D.Revenue recognition policies.

정답:
Explanation:
Choice "d" is correct. The summary of significant accounting policies should include "policies." The only policy in the choices listed is the revenue recognition policies.
Choice "a" is incorrect. A description of current year equity transactions is not a policy. It should be disclosed somewhere in the footnotes but not in the summary of significant accounting policies. Choice "b" is incorrect. A summary of long-term debt outstanding is not a policy. It should be disclosed somewhere in the footnotes but not in the summary of significant accounting policies. Choice "c" is incorrect. A schedule of fixed assets is not a policy. It should be disclosed somewhere in the footnotes but not in the summary of significant accounting policies.

Question No : 5

Which of the following should be disclosed in a summary of significant accounting policies?

A.Basis of profit recognition on long-term construction contracts.
B.Future minimum lease payments in the aggregate and for each of the five succeeding fiscal years.
C.Depreciation expense.
D.Composition of sales by segment.

정답:
Explanation:
Choice "a" is correct. The summary of significant accounting policies should disclose policies. The only policy in this question is the "basis" of profit recognition on long-term construction contracts. The other disclosures are accounting details and would be disclosed in other footnotes, but not in the summary of significant accounting policies.
Choice "b" is incorrect. The future minimum lease payments should be disclosed, but not in the summary of significant accounting policies.
Choice "c" is incorrect. Depreciation expense should certainly be disclosed, but not in the summary of significant accounting policies.
Choice "d" is incorrect. The composition of sales by segment should be disclosed, but not in the summary of significant accounting policies.

Question No : 6

What is the purpose of information presented in notes to the financial statements?

A.To provide disclosures required by generally accepted accounting principles.
B.To correct improper presentation in the financial statements.
C.To provide recognition of amounts not included in the totals of the financial statements.
D.To present management's responses to auditor comments.

정답:
Explanation:
Choice "a" is correct. Information presented in notes to the financial statements have the purpose of providing disclosures required by generally accepted accounting principles. SFAC 5 para. 7

Question No : 7

Which of the following describes how comprehensive income should be reported?

A.Must be reported in a separate statement, as part of a complete set of financial statements.
B.Should not be reported in the financial statements but should only be disclosed in the footnotes.
C.May be reported in a separate statement, in a combined statement of income and comprehensive income, or within a statement of stockholders' equity.
D.May be reported in a combined statement of income and comprehensive income or disclosed within a statement of stockholders' equity; separate statements of comprehensive income are not permitted.

정답:
Explanation:
Choice "c" is correct.
Comprehensive income must be presented in one of three formats:

Question No : 8

According to the FASB conceptual framework, comprehensive income includes which of the following?

A.Option A
B.Option B
C.Option C
D.Option D

정답:
Explanation:
Choice "b" is correct. Comprehensive income is the change in equity of a business during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity except those resulting from investments by owners and distributions to owners. SFAC 6 para 70.

Question No : 9

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

정답:
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 : 10

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.$3,750
C.$4,500
D.$5,000

정답:
Explanation:
Choice "d" is correct. A change in estimated useful life is a change in accounting estimate, and is therefore accounted for prospectively. The revised useful life should be used as of the beginning of the year of the change and should be applied to the current book value of the fixed asset.
The first step in determining the depreciation expense in the year of the change in estimate is to determine the book value of the labeling machine at the time of the change: Original cost $46,000
- Accumulated depreciation 15,000 = [(46,000 - 1,000) / 12] *4 Current book value $31,000
This book value is then depreciated over the remaining life of the fixed asset based on the new estimated life. In this problem, the new estimated life is 10 years, four of which have already passed,
so the asset must be depreciated over the remaining 6 years:
($31,000 - 1,000) / 6 = $5,000
Choice "a" is incorrect. This answer is incorrectly calculated by adding the salvage value to the current book value, and by using the entire 10 year revised estimated life. Salvage value should always be subtracted and the asset should only be depreciated over the remaining life of the asset.
Choice "b" is incorrect. This is the annual depreciation before the change in estimated life ($46,000 - $1,000) / 12 = $3,750]. The depreciation after the change in estimate should be calculated as described above.
Choice "c" is incorrect. This would have been the annual straight-line depreciation if the original useful life of the asset had been 10 years rather than 12 years. The change in estimated life is applied prospectively, as described above, not retrospectively. Comprehensive Income

Question No : 11

Envoy Co. manufactures and sells household products. Envoy experienced losses associated with its small appliance group. Operations and cash flows for this group can be clearly distinguished from the
rest of Envoy's operations. Envoy plans to sell the small appliance group with its operations.
What is the earliest point at which Envoy should report the small appliance group as a discontinued operation?

A.When Envoy classifies it as held for sale.
B.When Envoy receives an offer for the segment.
C.When Envoy first sells any of the assets of the segment.
D.When Envoy sells the majority of the assets of the segment.

정답:
Explanation:
Choice "a" is correct. The earliest period that a component of an entity can be reported in discontinued operations is when the component meets the following "held for sale" criteria:

Question No : 12

Mellow Co. depreciated a $12,000 asset over five years, using the straight-line method with no salvage value. At the beginning of the fifth year, it was determined that the asset will last another four years.
What amount should Mellow report as depreciation expense for year 5?

A.$600
B.$900
C.$1,500
D.$2,400

정답:
Explanation:
Choice "a" is correct. Over the first 4 years, the asset would be depreciated down to $2,400. Once it was determined that the asset would last for another 4 years, $600 would be depreciated each year of that 4 year period. This change is a change in accounting estimate (the estimate being the life of the asset).
Changes is accounting estimate are accounted for in the current year and future years if the change affects both.
Choice "b" is incorrect. This answer is the annual difference between the depreciation expense IF depreciation expense had been retroactively restated ($24,000 / 8 = $1,500) and the correct depreciation expense. Retroactive restatement is not appropriate for changes in accounting estimate.
Choice "c" is incorrect. This answer is the depreciation expense IF depreciation had been retroactively restated ($24,000 / 8 = $1,500). Retroactive restatement is not appropriate for changes in accounting estimate.
Choice "d" is incorrect. This answer is the undepreciated amount at the beginning of the fifth year or the amount of the annual depreciation expense for each of the first 4 years. Either way, it certainly is not going to be the depreciation expense for that year because the remaining cost will depreciated over the remaining period.

Question No : 13

In which of the following situations should a company report a prior-period adjustment?

A.A change in the estimated useful lives of fixed assets purchased in prior years.
B.The correction of a mathematical error in the calculation of prior years' depreciation.
C.A switch from the straight-line to double-declining balance method of depreciation.
D.The scrapping of an asset prior to the end of its expected useful life.

정답:
Explanation:
Choice "b" is correct. Prior period adjustments consist of: corrections of errors in the financial statements of prior periods, retroactive restatements required by new GAAP pronouncements, and changes from a non-GAAP method of accounting to a GAAP method of accounting (which are corrections of errors).
Choice "a" is incorrect. This change is a change in accounting estimate.
Choice "c" is incorrect. This change is a change for one GAAP method of depreciation to another GAAP method of depreciation. Under SFAS No. 154, it is treated as a change in accounting estimate effected by a change in accounting principle and is handled prospectively, and not as a prior-period adjustment.
Choice "d" is incorrect. This is a business activity ordinary in nature.

Question No : 14

On December 31, 20X2, the Board of Directors of Maxy Manufacturing, Inc. committed to a plan to discontinue the operations of its Alpha division. Maxy estimated that Alpha's 20X3 operating loss would be $500,000 and that the fair value of Alpha's facilities was $300,000 less than their carrying amounts.
The estimate for 20X3 turned out to be correct. Alpha's 20X2 operating loss was $1,400,000, and the division was actually sold for $400,000 less than its carrying amount. Maxy's effective tax rate is 30%.
In its 20X3 income statement, what amount should Maxy report as loss from discontinued operations?

A.$350,000
B.$500,000
C.$420,000
D.$600,000

정답:
Explanation:
Choice "c" is correct. The 20X3 loss from discontinued operations would include both the 20X3 operating loss of $500,000 (which turned out to be a correct estimate) and the "additional" loss (on disposal) of $100,000, net of tax, for a total of $600,000 x .70 or $420,000.
Choice "a" is incorrect. It includes the 20X3 operating loss of $500,000 but not the $300,000 impairment loss but does report the 20X3 operating loss net of tax.
Choice "b" is incorrect. It includes the 20X3 operating loss of $500,000, but not the $100,000 loss on disposal, and reports the 20X3 operating loss gross of tax and not net of tax.
Choice "d" is incorrect. It reports the 20X3 loss from discontinued operations gross of tax and not net of tax. The 20X3 loss from discontinued operations should include both the 20X3 operating loss of $500,000 and the loss on disposal of $100,000, net of tax, for a total of $600,000 x .70 or $420,000.

Question No : 15

On December 31, 20X2, the Board of Directors of Maxy Manufacturing, Inc. committed to a plan to discontinue the operations of its Alpha division. Maxy estimated that Alpha's 20X3 operating loss would be $500,000 and that the fair value of Alpha's facilities was $300,000 less than their carrying amounts.
Alpha's 20X2 operating loss was $1,400,000, and the division was actually sold for $400,000 less than its carrying amount in 20X3. Maxy's effective tax rate is 30%.
In its 20X2 income statement, what amount should Maxy report as loss from discontinued operations?

A.$980,000
B.$1,190,000
C.$1,400,000
D.$1,700,000

정답:
Explanation:
Choice "b" is correct. Since the fair value of Alpha's facilities was $300,000 less than its carrying value, there has been an impairment loss, and that loss should be recognized in 20X2. That $300,000 impairment loss plus the $1,400,000 20X2 operating loss would be recognized in 20X2 net of tax. The total loss would be $1,700,000 × 70% (100% - 30%) or $1,190,000.
Choice "a" is incorrect. It includes the 20X2 operating loss of $1,400,000 but not the $300,000 impairment loss but does report the 20X2 operating loss net of tax.
Choice "c" is incorrect. It includes the 20X2 operating loss of $1,400,000, but not the $300,000 impairment loss, and reports the 20X2 operating loss gross of tax and not net of tax.
Choice "d" is incorrect. It reports the 20X2 loss from discontinued operations gross of tax and not net of tax.

AICPA CPA-Financial 시험