Friday, July 2, 2021

FAR - CPA Financial Accounting and Reporting Updated Cheat Sheet by Killexams.com

Group of smiling students in front of their school

Web is over loaded with FAR exam dumps providers your majority of all of them are selling outmoded and inaccurate FAR questions. You need to do fight to find out Correct and 2021 Up-to-date FAR PDF Dumps store on web site. It is far better if you choose not to waste products your time for research, merely trust on the ideal FAR exam dumps provider killexams. com, instead of spending several $ $ $ $ on invalid and out-of-date FAR PDF Dumps questions. Basically Download 100% free FAR PDF Dumps questions. You will be absolutely satisfied. Make an account to download recent and legal FAR boot camp that contains Exact FAR exam questions. Down load FAR VCE practice evaluation for your constant practice as well as training. Options that come with Killexams FAR PDF Dumps

100% Pass Guarantee

killexams-guarantee.jpg

-> Instant FAR PDF Dumps download Easy access
-> Comprehensive FAR Questions as well as Answers
-> 98% Success Price of FAR Exam
-> Assured Actual FAR exam questions
-> FAR Questions Updated for Regular time frame.
-> Valid as well as 2021 Refreshed FAR Exam Dumps
-> 100% Portable FAR Exam Records
-> Full displayed FAR VCE Exam Simulator
-> No Limitation on FAR Exam Down load Access
-> Good Discount Coupons
-> 100% Secured Down load Account
-> 100% Confidentiality Made sure
-> 100% Achieving success Guarantee
-> 100% Free Question Bank sample Questions
-> No Concealed Cost
-> Basically no Monthly Fees
-> No Computerized Account Make up
-> FAR Exam Update Intimation by E-mail
-> Free Tech support team Exam Information at:
https://killexams.co … sure/exam-detail/FAR
Pricing Points at: https://killexams.co … price-comparison/FAR
See Carry out List: https://killexams.com/vendors-exam-list Discount Minute coupon on Extensive FAR PDF Dumps Dumps; WC2020: 60% Flat Price reduction on each exam PROF17: 10% Further Price reduction on Worth Greater than $69 DEAL17: 15% Further Price reduction on Worth Greater than 99 dollars

killexams-boxes.png

**** FAR Description | FAR Syllabus | FAR Exam Objectives | FAR Course Outline ****

**** SAMPLE CPA Financial Accounting and Reporting 2021 Dumps ****

QUESTION: 154
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo’s president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies.
Quo’s 1993 financial statements will be presented in comparative form with its 1992
financial statements. This question represents one of Quo’s transactions. List B
represents the general accounting treatment required for these transactions. These
treatments are:
. Cumulative effect approach - Include the cumulative effect of the adjustment resulting
from the accounting change or error correction in the 1993 financial statements, and do
not restate the 1992 financial statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial
statements and adjust 1992 beginning retained earnings if the error or change affects a
period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but
do not restate 1992 financial statements.
Item to Be Answered
Quo changed from LIFO to FIFO to account for its finished goods inventory. List B
(Select one)
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: B
Explanation:
Choice “B” is correct. A change in accounting principle should be shown in the retained
earnings statement of the earliest year presented as an adjustment of the beginning
balance. All prior year financial statements are recast.
QUESTION: 155
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo’s president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies. Quo’s 1993 financial statements will be presented in
comparative form with its 1992 financial statements. This question represents one of
Quo’s transactions. List A represents possible clarifications of these transactions as: a
change in accounting principle, a change in accounting estimate, a correction of an error
in previously presented financial statements, or neither an accounting change nor an
accounting error.
Item to Be Answered
Quo changed from FIFO to average cost to account for its raw materials and work in
process inventories. List A (Select one)
A. Change in accounting principal.
B. Change in accounting estimate.
C. Correction of an error in previously presented financial statements.
D. Neither an accounting change nor an accounting error.
Answer: A
Explanation:
Choice “a” is correct. Change in inventory pricing method from FIFO to average cost is a
change in accounting principle.
QUESTION: 156
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo’s president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies. Quo’s 1993 financial statements will be presented in
comparative form with its 1992 financial statements. This question represents one of
Quo’s transactions. List B represents the general accounting treatment required for these
transactions. These treatments are: . Cumulative effect approach - Include the
cumulative effect of the adjustment resulting from the accounting change or error
correction in the 1993 financial statements, and do not restate the 1992 financial
statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial
statements and adjust 1992 beginning retained earnings if the error or change affects a
period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but
do not restate 1992 financial statements.
Item to Be Answered
Quo changed from FIFO to average cost to account for its raw materials and work in
process inventories. List B (Select one)
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: B
Explanation:
Choice “B” is correct. A change in accounting principle should be shown in the retained
earnings statement of the earliest year presented as an adjustment of the beginning
balance. All prior year financial statements are recast.
QUESTION: 157
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo’s president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies.
Quo’s 1993 financial statements will be presented in comparative form with its 1992
financial statements. This question represents one of Quo’s transactions. List A
represents possible clarifications of these transactions as: a change in accounting
principle, a change in accounting estimate, a correction of an error in previously
presented financial statements, or neither an accounting change nor an accounting error.
Item to Be Answered
Quo sells extended service contracts on its products. Because related services are
performed over several years, in 1993 Quo changed from the cash method to the accrual
method of recognizing income from these service contracts.
List A (Select one)
A. Change in accounting principal.
B. Change in accounting estimate.
C. Correction of an error in previously presented financial statements.
D. Neither an accounting change nor an accounting error.
Answer: C
Explanation:
Choice “c” is correct. Change from the cash method to the accrual method is a correction
of an error in previously presented financial statements.
QUESTION: 158
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo’s president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies.
Quo’s 1993 financial statements will be presented in comparative form with its 1992
financial statements. This question represents one of Quo’s transactions. List B
represents the general accounting treatment required for these transactions. These
treatments are:
. Cumulative effect approach - Include the cumulative effect of the adjustment resulting
from the accounting change or error correction in the 1993 financial statements, and do
not restate the 1992 financial statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial
statements and adjust 1992 beginning retained earnings if the error or change affects a
period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but
do not restate 1992 financial statements. Item to Be Answered
Quo sells extended service contracts on its products. Because related services are
performed over several years, in 1993 Quo changed from the cash method to the accrual
method of recognizing income from these service contracts.
List B (Select one)
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: B
Explanation:
Choice “B” is correct. If comparative FS are issued, restate prior year’s FS. If
comparative FS are not issued, restate prior year-end’s retained earnings account by
“adjusting” (net of tax) the opening balance of the current retained earnings statement.
Note that when an error is corrected, retroactive restatement is used, and when there is a
change in accounting principle, retrospective restatement is done. However, this is only a
difference in terminology.
QUESTION: 159
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo’s president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies. Quo’s 1993 financial statements will be presented in
comparative form with its 1992 financial statements. This question represents one of
Quo’s transactions. List A represents possible clarifications of these transactions as: a
change in accounting principle, a change in accounting estimate, a correction of an error
in previously presented financial statements, or neither an accounting change nor an
accounting error.
Item to Be Answered
During 1993, Quo determined that an insurance premium paid and entirely expensed in
1992 was for the period January 1, 1992, through January 1, 1994.
List A (Select one)
A. Change in accounting principal.
B. Change in accounting estimate.
C. Correction of an error in previously presented financial statements.
D. Neither an accounting change nor an accounting error.
Answer: C
Explanation:
Choice “c” is correct. Expensing insurance premiums when paid (rather than allocating
them to the periods benefited) is a correction of an error in previously presented financial
statements.
QUESTION: 160
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo’s president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies.
Quo’s 1993 financial statements will be presented in comparative form with its 1992
financial statements. This question represents one of Quo’s transactions. List B
represents the general accounting treatment required for these transactions. These
treatments are:
. Cumulative effect approach - Include the cumulative effect of the adjustment resulting
from the accounting change or error correction in the 1993 financial statements, and do
not restate the 1992 financial statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial
statements and adjust 1992 beginning retained earnings if the error or change affects a
period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but
do not restate 1992 financial statements.
Item to Be Answered
During 1993, Quo determined that an insurance premium paid and entirely expensed in
1992 was for the period January 1, 1992, through January 1, 1994.
List B (Select one)
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: B
Explanation:
Choice “B” is correct. If comparative FS are issued, restate prior year’s FS. If
comparative FS are not issued, restate prior year-end’s retained earnings account by
“adjusting” (net of tax) the opening balance of the current retained earnings statement.
QUESTION: 161
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo’s president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies.
Quo’s 1993 financial statements will be presented in comparative form with its 1992
financial statements. This question represents one of Quo’s transactions. List A
represents possible clarifications of these transactions as: a change in accounting
principle, a change in accounting estimate, a correction of an error in previously
presented financial statements, or neither an accounting change nor an accounting error.
During 1993, Quo increased its investment in Worth, Inc. from a 10% interest, purchased
in 1992, to 30%, and acquired a seat on Worth’s board of directors. As a result of its
increased investment, Quo changed its method of accounting for investment in Worth,
Inc. from the cost method to the equity method.
List A
A. Change in accounting principle.
B. Change in accounting estimate.
C. Correction of an error in previously presented financial statements.
D. Neither an accounting change nor an accounting error.
Answer: D
Explanation:
Choice “d” is correct. A change from the cost method (less than 20% ownership) to the
equity method (20% or more ownership or a Board seat or other significant influence) of
accounting for investment in an investee is neither an accounting change nor an
accounting error. If it is not an accounting change, it cannot be a change in accounting
principle or a change in accounting estimate since those two types of changes are both
accounting changes.
There is a considerable amount of controversy on this particular answer. Some people
think that this change is a change in accounting principle (something certainly changed,
but was it the accounting principle?), and others think it is a change in accounting entity
(which is not one of the available answers; anyway, did the accounting entity actually
change or is it the same entity accounted for differently?). Under SFAS No. 154, a
change in accounting principle is treated retrospectively and a change in accounting
entity is treated retrospectively.
This kind of change (cost to equity) has never been specifically identified in any
accounting literature as either a change in accounting principle or a change in accounting
entity. The words “cost method” were never mentioned in APB 20 (other than the full
cost method for oil & gas companies, which is an entirely different subject), nor was it
mentioned in SFAS No. 154. It was, however, discussed in APB 18 (the pronouncement
for the equity method) in Paragraph 19m (bold added): “An investment in common stock
of an investee that was previously accounted for on other than the equity method may
become qualified for use of the equity method by an increase in the level of ownership
described in paragraph 17 (i.e., acquisition of additional voting stock by the investor,
acquisition or retirement of voting stock by the investee, or other transactions). When an
investment qualifies for use of the equity method, the investor should adopt the equity
method of accounting. The investment, results of operations (current and prior periods
presented), and retained earnings of the investor should be adjusted retroactively in a
manner consistent with the accounting for a step-by-step acquisition of a subsidiary.”
What does all this mean? It means that, when there is a change in the percentage of
ownership that changes accounting from the cost method to the equity method, the
change is treated retroactively (just like changes in accounting entity used to be treated,
although they are now treated retrospectively). It does not say that the change is a change
in accounting principle or anything else. Nothing in SFAS No.154 changed this
treatment. So all this still makes Choice “d” correct. This whole issue might easily be
considered to be splitting hairs, at the very least. Some questions on the CPA exam are
just that way. Most are not.
QUESTION: 162
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed,
working closely with Quo’s president and outside accountants, made changes in
accounting policies, corrected several errors dating from 1992 and before, and instituted
new accounting policies. Quo’s 1993 financial statements will be presented in
comparative form with its 1992 financial statements. This question represents one of
Quo’s transactions. List B represents the general accounting treatment required for these
transactions. These treatments are:
. Cumulative effect approach - Include the cumulative effect of the adjustment resulting
from the accounting change or error correction in the 1993 financial statements, and do
not restate the 1992 financial statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial
statements and adjust 1992 beginning retained earnings if the error or change affects a
period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but
do not restate 1992 financial statements.
During 1993, Quo increased its investment in Worth, Inc. from a 10% interest, purchased
in 1992, to 30%, and acquired a seat on Worth’s board of directors. As a result of its
increased investment, Quo changed its method of accounting for investment in Worth,
Inc. from the cost method to the equity method.
List B
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: B
Explanation:
Choice “B” is correct. The equity method of accounting is applied retroactively when the
investor has acquired 20% ownership. Prior to acquiring the ability to influence the
investee, the cost method is proper. The retroactive restatement approach does not mean
that this change is the correction of an error (which is now treated retroactively), a change
in accounting principle (which is now treated retrospectively), or a change in accounting
entity (which is now treated retrospectively). It just means that retroactive restatement is
the proper treatment.
QUESTION: 163
According to the FASB conceptual framework, what does the concept of reliability in
financial reporting include?
A. Effectiveness.
B. Certainty.
C. Precision.
D. Neutrality.
Answer: D
Explanation:
Choice “d” is correct. The concept of reliability in financial reporting includes; neutrality,
representational faithfulness and verifiability.
Choices “a”, “b”, and “c” are incorrect, per the above.
****************

http://killexams-bra … est-topics-with.html
https://www.instapap … .com/read/1321179331
https://killexams-po … .com/817438/23763908
https://killexams-po … .com/817438/23786916
https://www.4shared. … ccounting-and-R.html
http://ge.tt/4pYLNc83
http://killexams.dec … ns-by-killexams-com/
https://justpaste.it/FAR
http://killexams3.is … llexams-com-14623407
https://ello.co/kill … u-syp_wr3k25fbuqhhpw
https://sites.google … /killexams-far-dumps
https://files.fm/f/87nxmbfbv
http://feeds.feedbur … Des-3611QuestionBank
https://spaces.hight … .pdf#pageThumbnail-1
https://exam-labs.vl … ions-by-killexamscom

Source / Reference:

http://killexams.dro … .com/367904/12988488
http://killexamsbrai … l-question-bank.html
https://plus.google. … ts/AkWWqCmjs5P?hl=en
https://wp.me/p7SJ6L-2nv
https://www.wesrch.c … s/prpdfBU1HWO000UBKH
http://en.calameo.co … 049235267ca15802f292
https://docs.zoho.co … 4d46b0ccb601632be497
https://view.publita … mps-to-get-100-marks
||excel||
||excel||
||excel||
https://app.box.com/ … sf79gn2f0925798bd4dv
https://speakerdeck. … fore-you-go-for-test
https://issuu.com/arfansaleem/docs/far
https://richerd54.dr … .com/655269/18376009

To Buy Complete Question Bank of FAR with Latest Syllabus Dumps, Click Blow:
https://killexams.co … /addtocart/FAR/pdf/3

FAR dumps, FAR braindumps, FAR Questions and Answers, FAR Practice Test, FAR boot camp, Pass4sure FAR, Pass4sure FAR Practice Test, Download FAR dumps, Free FAR pdf, FAR Dumps Free, FAR practice exam, FAR actual test, FAR PDF download, Pass4sure FAR Download, FAR VCE

Admin area

Categories