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CPA-Financial AICPA CPA Financial Accounting and Reporting

  • AICPA
  • 4 free sample questions

About this exam

CPA-Financial is the AICPA exam AICPA CPA Financial Accounting and Reporting. Paid practice material for this exam is not available yet, but you can try its free sample questions.

Exam code
CPA-Financial
Vendor
AICPA
Practice questions
Not available yet
Free sample questions
4
Question bank last updated
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Try 2 sample questions

Taken from the free sample set for CPA-Financial.

Question 1

In the hierarchy of generally accepted accounting principles, APB Opinions have the same authority as AICPA

  1. Option A:
    Statements of Position.
  2. Option B:
    Industry Audit and Accounting Guides.
  3. Option C:
    Issues Papers.
  4. Option D:
    Accounting Research Bulletins. 
Show answer and explanation

Correct answer: D

Choice "d" is correct. AICPA Accounting Research Bulletins, FASB Standards, FASB Interpretations, FASB Staff Positions, FASB Statement 133 Implementation Issues, and APB Opinions and Interpretations are the most authoritative sources of generally accepted accounting principles. Choice "a" is incorrect. AICPA Statements of Position, AICPA Accounting and Auditing Guides, and FASB Technical Bulletins are secondary sources of generally accepted accounting principles. Choice "b" is incorrect. AICPA Statements of Position, AICPA Accounting and Auditing Guides, and FASB Technical Bulletins are secondary sources of generally accepted accounting principles. Choice "c" is incorrect. AICPA Issues Papers and Practice Bulletins, FASB Concepts Statements, and other authoritative pronouncements are tertiary sources for generally accepted accounting principles.

Question 2

According to the FASB conceptual framework, which of the following situations violates the concept of reliability? 

  1. Option A:
    Data on segments having the same expected risks and growth rates are reported to analysts estimating future profits.
  2. Option B:
    Financial statements are issued nine months late.
  3. Option C:
    Management reports to stockholders regularly refer to new projects undertaken, but the financial statements never report project results.
  4. Option D:
    Financial statements include property with a carrying amount increased to management's estimate of market value.
Show answer and explanation

Correct answer: D

Choice "d" is correct. Management's estimate of market value lacks verifiability, which is a component of reliability. SFAC 2 para. 89 Choice "a" is incorrect. Communicating data on segments to analysts does not violate the concept of reliability. Choice "b" is incorrect. Issuing financial statements nine months late violates timeliness, which is a component of relevance, not reliability. SFAC 2 para. 56
See all 4 free sample questions