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CPA Practice questions with answers 100% correct
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Exam of 3 pages for the course CPA at CPA (CPA Practice EXAM)
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CPA PracticeWhich of the following is not an objective of financial reporting? - answerTo provide info
about the fair value of an entity's economic resources
What two primary qualitative characteristics make accounting information useful? -
answerRelevance and Faithful representation.
Comparability, understandability, timeliness, and verifiability are enhancing qualitative
characteristics that contribute to: - answerD
(yes and yes)
Under accounting principles generally accepted in the United States, in order for an item
to qualify for recognition in the financial statements of a company, the item must
I. Be measurable in monetary terms
II. Reflect the consensus expectations of investors
III. Meet the definition of an element of the financial statements - answerI. Be
measurable in monetary terms
III. Meet the definition of an element of the financial statements
Consistency and feedback relate most closely to which two of the following accounting
concepts, respectively? - answerPredictive value and confirmatory value
Information is considered material to the financial statements if
I. It falls within industry-specific quantitative guidelines published by the Financial
Accounting Standards Board.
II. Its omission could make a difference in the decisions made by a user relying on the
financial statements.
III. Its misstatement could make a difference in the decisions made by a user relying on
the financial statement. - answerII. Its omission could make a difference in the decisions
made by a user relying on the financial statements.
III. Its misstatement could make a difference in the decisions made by a user relying on
the financial statement.
According to the FASB Conceptual Framework, financial information is considered
faithfully represented if it is - answerComplete, neutral, and free from error
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