Certified Public Accountant(CPA Exam) Consist of four Paper .In the United States, the CPA is a license to provide accounting services to the public.The exam is administered by the American Institute of Certified Public Accountants (AICPA). USA EXAM Online Practices Test
2018 CPA Course Syllabus
Auditing and Attestation (AUD)
Financial Accounting and Reporting (FAR)
Business Environment Concepts (BEC)
Free CPA Exam Questions
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Do you want to crack CPA Exam? Free CPA Exam Questions based on Syllabus.Certified Public Accountant(CPA Exam) Consist of four Paper .In the United States, the CPA is a license to provide accounting services to the public.The exam is administered by the American Institute of Certified Public Accountants (AICPA).
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Question 1 of 5
What is the present value of all future retirement payments attributed by the pension benefit formula to employee services rendered prior to that date only?
Per ASC Topic 715, the present value of future retirement payments attributed by the pension benefit formula to employee services rendered prior to that date is the accumulated benefit obligation, which is based on current salaries.
Question 2 of 5
A hedge to offset the risk of loss on a recognized asset or liability is which of the following types of hedge?
A hedge to offset the risk of loss on a recognized asset or liability could be either a cash flow hedge or a fair value hedge, at management’s discretion. If the risk of loss on the recognized asset or liability being hedged is from changes in exchange rates, the hedge would be classified as a cash flow hedge.
Question 3 of 5
On which of the following dates is a public entity required to measure the cost of employee services in exchange for an award of equity interests, based on the fair market value of the award?
This answer is correct because a share-based payment paid to employees in the form of equity is measured at the date of grant.
Question 4 of 5
On January 2, year 4, Raft Corp. discovered that it had incorrectly expensed a $210,000 machine purchased on January 2, year 1. Raft estimated the machine’s original useful life to be 10 years and its salvage value at $10,000. Raft uses the straight-line method of depreciation and is subject to a 30% tax rate. In its December 31, year 4 financial statements, what amount should Raft report as a prior period adjustment?
ASC Topic 250 provides that an error in the financial statements requires restatement of the financial statements with an adjusting entry to retained earnings for the earliest period presented. When Raft incorrectly expensed the machine in year 1, earnings before tax was understated by $210,000. Had Raft properly capitalized this asset, it would have recorded $20,000 depreciation expense per year in year 1, year 2, and year 3. Depreciation expense is calculated on a straight-line basis as $20,000 [($210,000 − $10,000)/10 years] per year. Over the three years, Raft would have recorded a total of $60,000 of depreciation expense. Therefore, as of January 2, year 4, expenses have been overstated by $150,000 ($210,000 − $60,000), and the tax effect of the adjustment is 30% × $150,000, or $45,000. Therefore, the prior period adjustment to retained earnings net of taxes is $105,000 ($150,000 − $45,000).
Question 5 of 5
For a capital lease, the amount recorded initially by the lessee as a liability should