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Becker AICPA Questions And Correct Answers
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Becker AICPA Questions And Correct AnswersThe objectives of financial reporting stem from which of the following
sources?
A. The need for conservatism.
B. The needs of the external users of the information.
C. Reporting on management's consistency.
D. Reporting on management's stewardship. Correct Ans - B
A company's year-end comparative statement of financial position reflects
the following changes from the prior year: cash increased by $40,000, total
liabilities increased by $32,000, and all other assets decreased by $65,000.
Which of the following statements is correct regarding the current-year
change in the company's stockholders' equity?
A. It increased by $25,000.
B. It increased by $105,000.
C. It decreased by $32,000.
D. It decreased by $57,000. Correct Ans - D
During the year, Granite Co. sold a building for $100,000 resulting in a gain
of $20,000. The building has a net book value of $80,000 at the time of the
sale. Granite uses the indirect method when preparing its statement of cash
flows. What is the amount that would be included in Granite's financing
activities section because of the building sale?
A. $0
B. $20,000
C. $80,000
D. $100,000 Correct Ans - A
Which of the following conditions or events would least likely raise
substantial doubt about an entity's ability to continue as a going concern?
A. Default on a loan agreement.
B. Flood damage to an insured warehouse.
C. Loss of a significant customer or supplier.
D. Negative cash flows from operating activities Correct Ans - B
On January 1 of the current year, a corporation had 10,000 shares of
common stock outstanding. On March 30, the corporation issued 4,000
more shares of stock. There were no other changes in the number of shares
, outstanding. What is the weighted average number of shares that should be
used to calculate basic earnings per share?
A. 10,000
B. 12,000
C. 13,000
D. 14,000 Correct Ans - C
Star Corp. had the following accounts and balances in its general ledger as
of December 31: Petty cash $ 500 XYZ Bank—checking account 20,000
Marketable equity security 10,000 Marketable debt security 7,500 ABC
Bank—depository account 5,000 What amount should Star report as cash
and cash equivalents in the balance sheet as of December 31?
A. $25,000
B. $25,500
C. $35,000
D. $42,500 Correct Ans -
For an available-for-sale security transferred into the trading category, the
portion of the unrealized holding gain or loss at the date of the transfer
that has not been previously recognized in earnings shall be:
A. Recognized in earnings immediately.
B. Amortized over the period to date of sale.
C. Transferred to other comprehensive earnings.
D. Deferred and recognized when the security is sold. Correct Ans -
A
At what value should a nongovernmental not-for-profit organization record
shares of stock when received?
A. Donor's basis.
B. Average of donor's basis and fair value on date of donation.
C. Fair value at end of year.
D. Fair value on the date of donation. Correct Ans - D
A company issued bonds with detachable common stock warrants. The
issue price exceeded the sum of the warrants' fair value and face value of
the bonds. The fair value of the bonds cannot be determined. What value, if
any, should be assigned to the warrants?
A. The excess of the proceeds over the face value of the bonds.
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