Free Practice AICPA CPA-Financial Exam Questions 2025

Stay ahead with 100% Free CPA Financial Accounting and Reporting CPA-Financial Dumps Practice Questions

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Total 165 Questions | Updated On: Jun 05, 2025

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Question 1

What information should a public company present about revenues from its reporting segments?

A : Disclose separately the amount of sales to unaffiliated customers and the amount of intracompany sales.

B : Disclose as a combined amount sales to unaffiliated customers and intracompany sales between geographic areas.

C : Disclose separately the amount of sales to unaffiliated customers but not the amount of intracompany sales between geographic areas.

D : No disclosure of revenues from foreign operations need be reported.

Answer: A

Question 2

Which of the following is true regarding the presentation of "comprehensive income."

A : Option A

B : Option B

C : Option C

D : Option D

Answer: C

Question 3

Which of the following should be disclosed in a summary of significant accounting policies?I. Management's intention to maintain or vary the dividend payout ratio.II. Criteria for determining which investments are treated as cash equivalents.III. Composition of the sales order backlog by segment.

A : I only.

B : I and III.

C : II only.

D : II and III.

Answer: C

Question 4

In April 30, 20X4, Deer Corp. approved a plan to dispose of a component of its business. For the period January 1 through April 30, 20X4, the component had revenues of $500,000 and expenses of $800,000. The assets of the component were sold on October 15, 20X4 at a loss. In its income statement for the year ended December 31, 20X4, how should Deer report the component's operations from January 1 to April 30, 20X4?

A : $500,000 and $800,000 should be included with revenues and expenses, respectively, as part of continuing operations.

B : $300,000 should be reported as part of the loss on disposal of a component and included as part of continuing operations.

C : $300,000 should be reported as an extraordinary loss.

D : $300,000 should be reported as a loss from operations of a component and included in loss from discontinued operations.

Answer: D

Question 5

What is the purpose of information presented in notes to the financial statements?

A : To provide disclosures required by generally accepted accounting principles.

B : To correct improper presentation in the financial statements.

C : To provide recognition of amounts not included in the totals of the financial statements.

D : To present management's responses to auditor comments.

Answer: A

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Total 165 Questions | Updated On: Jun 05, 2025

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