FAR - CPA Exam Questions with
Correct Verified Answers Latest
Update (2024/2025) Guaranteed
Pass
1. Accumulated Other Comprehensive Income Formula - ANS
✓Other Comprehensive Income and PUFI Items to Date
+/- PUFI G/L from this year
+/- Reclassification Adjustments
Ending AOCI
2. Required Disclosures of OCI - ANS ✓-All disclosures must be on the
face of the statement of comprehensive income or in the notes
-items are shown before tax or net of tax, but tax effects must be shown in
statement or in notes.
3. F1 M2 - EPS & Public Companies - ANS ✓
4. SEC Form Requirements - ANS ✓-Over 50 forms
-Most Important
-10-K
-10-Q
-8-K
-Filed Electronically on EDGAR
CPA Exam
, 2
CPA
5. 10-K - ANS ✓YEARLY, AUDITED
Includes:
-MD&A
-Quantitative and Qualitative Disclosures about Market Risk
-Financial Statements and Supplemental Data
-Balance Sheet past three years, all other, past two years
Filing Deadlines:
-60 days for large accelerated filers
-75 days for accelerated filers
-90 days for all other registrants
Large Accelerated Filer
Accelerated Filer
6. Other Registrants - ANS ✓Large Accelerated: $700M market value
Accelerated: $75-700M market value & $100M revenue
Other: $100M revenue
7. 10-Q - ANS ✓QUARTERLY and unaudited
Includes:
-Financial Statements
-MD&A
-Quantitative and Qualitative Disclosures of Risk
CPA Exam
, 3
CPA
Filing Deadlines:
-40 days for large accelerated filers and accelerated filers
-45 days for all other registrants
8. 8-K - ANS ✓MATERIAL EVENT OCCURS
-must be done quickly - 4 days
Examples of Material Event
-bankruptcy
-acquisition/disposition of assets
-changes in accountant
-changes in securities and trading market
-changes in board of directors or officers
-amendments to bylaws or articles of incorporation
9. Simple versus Complex Capital Structure - ANS ✓Simple: only
need basic EPS
10. Basic EPS Formula - ANS ✓Net Income - Preferred
Dividends /
CPA Exam
, 4
CPA
Weighted Average # of Common Shares Outstanding (WACSO)
11. Preferred Dividend Amount - ANS ✓Cumulative - # of
preferred shares x par value per share x rate
Noncumulative (declared) - subtract dividend declared amount
12. WACSO - ANS ✓-all shares outstanding are weighted for time
outstanding
-stock splits and dividends are retroactively adjusted
13. Diluted EPS - Options, Warrants, Equivalents - ANS ✓-
Dilutive if average price > strike/exercise price
-add additional shares to EPS denominator
Calculate Additional Shares Outstanding using the Treasury Stock Method:
Number of Common Shares -
(Number of Common Shares * Strike Price / Average Market Price)
14. Options and Warrants - In the Money vs. Out of the Money -
ANS ✓In the Money
-average market price > strike price = dilutive
Out of the Money
-average market price < strike price = anti-dilutive
CPA Exam
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller DoctorKen. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.