Free AICPA AICPA-CPA Exam Questions

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Total 205 Questions | Updated On: Jun 16, 2026

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Question 1

Prior to the financial year end of 31 July 20X9, Cannon Co has received a claim of $100,000 from a supplier for providing poor quality goods which have damaged the supplier’s plant and equipment. Cannon Co’s lawyers have stated that there is a 20% chance that Cannon will successfully defend the claim. Which of the following is the correct accounting treatment for the claim in the financial statements for the year ended 31 July 20X9?

A : Cannon should neither provide for nor disclose the claim

B : Cannon should disclose a contingent liability of $100,000

C : Cannon should provide for the expected cost of the claim of $100,000

D : Cannon should provide for an expected cost of $20,000

Answer: C

Question 2

Which of the following requires filing a gift tax return if the transfer exceeds the available annual gift tax exclusion?

A : Medical expenses paid directly to a physician on behalf of an individual unrelated to the donor.

B : Tuition paid directly to an accredited university on behalf of an individual unrelated to the donor.

C : Payments for college books, supplies, and dormitory fees on behalf of an individual unrelated to the donor.

D : Campaign expenses paid to a political organization.

Answer: C

Question 3

Sales on credit is recorded in which of the following journal ?

A : Purchase journal

B : Sales journal

C : Purchase return journal

D : Sales return journal

Answer: B

Question 4

Sales on credit is recorded in which of the following journal ?

A : Purchase journal

B : Sales journal

C : Purchase return journal

D : Sales return journal

Answer: B

Question 5

Sales on credit is recorded in which of the following journal ?

A : Purchase journal

B : Sales journal

C : Purchase return journal

D : Sales return journal

Answer: B

Page: 1 / 41

Total 205 Questions | Updated On: Jun 16, 2026

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