CPA EXAM PREP WITH ALL NEEDED TO
PASS
Chapter k1
The kpurpose kof kfinancial kreporting kis kto kprovide kinformation kprimarily kfor kwhich kof
kthe kfollowing kgroups?
A. kInternal kRevenue kService
B. kFinancial kAccounting kStandards kBoard
C. kInvestors kand kCreditors
D. kGovernment k- kcorrect kanswers k-C. kInvestors kand kCreditors
The kFASB khas kmaintained kthat:
,A. kThe kinterests kof kthe kreporting kfirms kwill kbe ka kprimary kconsideration kwhen
kdeveloping knew kGAAP
B. kNew kGAAP kshould kbe kneutral kand knot kfavor kany kparticular kreporting kobjective
k
C. kGAAP kshould khave klittle kor kno kcost kof kcompliance k
D. kGAAP kshould kresult kin kthe kmost kconservative kpossible kfinancial kstatements k-
kcorrect kanswers k-B. kNew kGAAP kshould kbe kneutral kand knot kfavor kany kparticular
kreporting kobjective
Which kof kthe kfollowing kstatements kinclude kthe kmost kuseful kguidance kfor
kpracticing kaccountants kconcerning kthe kFASB kAccounting kStandards kCodification. k
A. kThe kCodification ksignificantly kmodified kthe kcontent kof kGAAP kwhen kit kbecame
keffective
B. kThe kCodification kincludes konly kFASB kstatements k
C. kThe kCodification kis kthe ksole ksource kof kU.S. kGAAP, kfor knongovernmental
kentities
D. kAn kaccountant kcan kbe ksure kthat kall kSEC krules kare kincluded kin kthe
kCodification k- kcorrect kanswers k-C. kThe kCodification kis kthe ksole ksource kof kU.S
kGAAP, kfor knongovernmental kentities
The kFASB kis ka(n) k
A. kPrivate ksector kbody
B. kGroup kof kaccounting kfirms
C. kGovernmental kunit
D. kInternational korganization k- kcorrect kanswers k-A. kPrivate ksector kbody
U.S. kGAAP kincludes ka kvery klarge kset kof kaccounting kguidance. kChoose kthe
kcorrect kstatement. k
A. kThe kFASB kAccounting kStandards kCodification kincludes kguidance kabout kitems
kthat kare knot kunder kthe kpurview kof kthe kGAAP, ksuch kas kthe kincome ktax kbasis kof
kaccounting. k
B. kInternational kaccounting kstandards kare knot kincluded kin kthe kFASB kAccounting
kStandards kCodification
C. kAuthoritative kguidance kfrom kFASB kStatements kadopted kbefore kthe kFASB
kAccounting kStandards kCodification kdoes knot kappear kin kthe kCodification k
D. kThere kis kan kimplied khierarchy kwithin kthe kFASB kAccounting kStandards
kCodification, kwith kFASB kstatements kassuming kthe ktop klevel k- kcorrect kanswers k-
B. kInternational kaccounting kstandards kare knot kincluded kin kthe kFASB kAccounting
kStandards kCodification
Which kof kthe kfollowing kwill kbest kprotect kinvestors kagainst kfraudulent kfinancial
kreporting kby kcorporations?
A. kThe krequirement kthat kfinancial kstatements kbe kaudited
, B. kThe kintegrity kof kmanagement
C. kThe kfact kthat kall kfirms kmust kreport kthe ksame kway
D. kCriminal kstatutes k- kcorrect kanswers k-A. kThe krequirement kthat kfinancial
kstatements kbe kaudited
Each kof kthe kfollowing kstatements kis kcorrect kregarding kthe kFinancial kAccounting
kStandards kBoard kexcept k
A. kIt kdevelops kand kattributes kthat kallow korganizations kto kunderstand kthe
knecessary kelements kto kensure ka krobust ksystem kof kinternal kcontrol k
B. kIt kestablishes kaccounting kconcepts kand kstandards kfor kfinancial kaccounting kand
kreporting kand kprovides kguidance kon kimplementation kof kstandards k
C. kIt kprovides ka kconceptual kframework kthat khelps kto kincrease kunderstanding kof,
kand kconfidence kin, kfinancial kinformation kon kthe kpart kof kusers kof kfinancial kreports
D. kIt kis krecognized kas kauthoritative kby kthe kUnited kStates kSecurities kand
kExchange kCommission kand kthe kAmerican kInstitute kof kCertified kPublic
kAccountants k- kcorrect kanswers k-A. kIt kdevelops kand kattributes kthat kallow
korganizations kto kunderstand kthe knecessary kelements kto kensure ka krobust ksystem
kof kinternal kcontrol
Which kof kthe kfollowing kaccounting kliterature kis knot kincluded kin kthe kFASB
kAccounting kStandards kCodification?
A. kAICPA kStatements kof kPosition
B. kStatements kof kAuditing kStandards
C. kFASB kStatements
D. kAccounting kResearch kBulletins k- kcorrect kanswers k-B. kStatements kof kAuditing
kStandards
The kFASB kamends kthe kAccounting kStandards kCodification kthrough kthe kissuance
kof
A. kTechnical kbulletins
B. kAccounting kstandards kupdates
C. kstatements kof kfinancial kaccounting kstandards
D. kStaff kaccounting kbulletins k- kcorrect kanswers k-B. kAccounting kstandards kupdates
Which kof kthe kfollowing kbest kdescribes kthe koperating kprocedure kfor kissuing ka knew
kFinancial kStandards kBoard k(FASB) kstatement?
A. kA knew kFASB kstatement kcan kbe krescinded kby ka kmajority kvote kof kthe kAICPA
kmembership
B. kthe kemerging kissues ktask kforce kmust kapprove ka kdiscussion kmemorandum
kbefore kit kis kdisseminated kto kthe kpublic k
C. kThe kexposure kdraft kis kmodified kper kpublic kopinion kbefore kissuing kthe
kdiscussion kmemorandum
PASS
Chapter k1
The kpurpose kof kfinancial kreporting kis kto kprovide kinformation kprimarily kfor kwhich kof
kthe kfollowing kgroups?
A. kInternal kRevenue kService
B. kFinancial kAccounting kStandards kBoard
C. kInvestors kand kCreditors
D. kGovernment k- kcorrect kanswers k-C. kInvestors kand kCreditors
The kFASB khas kmaintained kthat:
,A. kThe kinterests kof kthe kreporting kfirms kwill kbe ka kprimary kconsideration kwhen
kdeveloping knew kGAAP
B. kNew kGAAP kshould kbe kneutral kand knot kfavor kany kparticular kreporting kobjective
k
C. kGAAP kshould khave klittle kor kno kcost kof kcompliance k
D. kGAAP kshould kresult kin kthe kmost kconservative kpossible kfinancial kstatements k-
kcorrect kanswers k-B. kNew kGAAP kshould kbe kneutral kand knot kfavor kany kparticular
kreporting kobjective
Which kof kthe kfollowing kstatements kinclude kthe kmost kuseful kguidance kfor
kpracticing kaccountants kconcerning kthe kFASB kAccounting kStandards kCodification. k
A. kThe kCodification ksignificantly kmodified kthe kcontent kof kGAAP kwhen kit kbecame
keffective
B. kThe kCodification kincludes konly kFASB kstatements k
C. kThe kCodification kis kthe ksole ksource kof kU.S. kGAAP, kfor knongovernmental
kentities
D. kAn kaccountant kcan kbe ksure kthat kall kSEC krules kare kincluded kin kthe
kCodification k- kcorrect kanswers k-C. kThe kCodification kis kthe ksole ksource kof kU.S
kGAAP, kfor knongovernmental kentities
The kFASB kis ka(n) k
A. kPrivate ksector kbody
B. kGroup kof kaccounting kfirms
C. kGovernmental kunit
D. kInternational korganization k- kcorrect kanswers k-A. kPrivate ksector kbody
U.S. kGAAP kincludes ka kvery klarge kset kof kaccounting kguidance. kChoose kthe
kcorrect kstatement. k
A. kThe kFASB kAccounting kStandards kCodification kincludes kguidance kabout kitems
kthat kare knot kunder kthe kpurview kof kthe kGAAP, ksuch kas kthe kincome ktax kbasis kof
kaccounting. k
B. kInternational kaccounting kstandards kare knot kincluded kin kthe kFASB kAccounting
kStandards kCodification
C. kAuthoritative kguidance kfrom kFASB kStatements kadopted kbefore kthe kFASB
kAccounting kStandards kCodification kdoes knot kappear kin kthe kCodification k
D. kThere kis kan kimplied khierarchy kwithin kthe kFASB kAccounting kStandards
kCodification, kwith kFASB kstatements kassuming kthe ktop klevel k- kcorrect kanswers k-
B. kInternational kaccounting kstandards kare knot kincluded kin kthe kFASB kAccounting
kStandards kCodification
Which kof kthe kfollowing kwill kbest kprotect kinvestors kagainst kfraudulent kfinancial
kreporting kby kcorporations?
A. kThe krequirement kthat kfinancial kstatements kbe kaudited
, B. kThe kintegrity kof kmanagement
C. kThe kfact kthat kall kfirms kmust kreport kthe ksame kway
D. kCriminal kstatutes k- kcorrect kanswers k-A. kThe krequirement kthat kfinancial
kstatements kbe kaudited
Each kof kthe kfollowing kstatements kis kcorrect kregarding kthe kFinancial kAccounting
kStandards kBoard kexcept k
A. kIt kdevelops kand kattributes kthat kallow korganizations kto kunderstand kthe
knecessary kelements kto kensure ka krobust ksystem kof kinternal kcontrol k
B. kIt kestablishes kaccounting kconcepts kand kstandards kfor kfinancial kaccounting kand
kreporting kand kprovides kguidance kon kimplementation kof kstandards k
C. kIt kprovides ka kconceptual kframework kthat khelps kto kincrease kunderstanding kof,
kand kconfidence kin, kfinancial kinformation kon kthe kpart kof kusers kof kfinancial kreports
D. kIt kis krecognized kas kauthoritative kby kthe kUnited kStates kSecurities kand
kExchange kCommission kand kthe kAmerican kInstitute kof kCertified kPublic
kAccountants k- kcorrect kanswers k-A. kIt kdevelops kand kattributes kthat kallow
korganizations kto kunderstand kthe knecessary kelements kto kensure ka krobust ksystem
kof kinternal kcontrol
Which kof kthe kfollowing kaccounting kliterature kis knot kincluded kin kthe kFASB
kAccounting kStandards kCodification?
A. kAICPA kStatements kof kPosition
B. kStatements kof kAuditing kStandards
C. kFASB kStatements
D. kAccounting kResearch kBulletins k- kcorrect kanswers k-B. kStatements kof kAuditing
kStandards
The kFASB kamends kthe kAccounting kStandards kCodification kthrough kthe kissuance
kof
A. kTechnical kbulletins
B. kAccounting kstandards kupdates
C. kstatements kof kfinancial kaccounting kstandards
D. kStaff kaccounting kbulletins k- kcorrect kanswers k-B. kAccounting kstandards kupdates
Which kof kthe kfollowing kbest kdescribes kthe koperating kprocedure kfor kissuing ka knew
kFinancial kStandards kBoard k(FASB) kstatement?
A. kA knew kFASB kstatement kcan kbe krescinded kby ka kmajority kvote kof kthe kAICPA
kmembership
B. kthe kemerging kissues ktask kforce kmust kapprove ka kdiscussion kmemorandum
kbefore kit kis kdisseminated kto kthe kpublic k
C. kThe kexposure kdraft kis kmodified kper kpublic kopinion kbefore kissuing kthe
kdiscussion kmemorandum
