Free AICPA CPA-Financial Exam Questions

Become AICPA Certified with updated CPA-Financial exam questions and correct answers

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Total 165 Questions | Updated On: Apr 28, 2026

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Question 1

In general, an enterprise preparing interim financial statements should:

A : Defer recognition of seasonal revenue.

B : Disregard permanent decreases in the market value of its inventory.

C : Allocate revenues and expenses evenly over the quarters, regardless of when they actually occurred.

D : Use the same accounting principles followed in preparing its latest annual financial statements.

Answer: D

Question 2

In which of the following situations should a company report a prior-period adjustment?

A : A change in the estimated useful lives of fixed assets purchased in prior years.

B : The correction of a mathematical error in the calculation of prior years' depreciation.

C : A switch from the straight-line to double-declining balance method of depreciation.

D : The scrapping of an asset prior to the end of its expected useful life.

Answer: B

Question 3

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 4

Which of the following is not a valuation technique that can be used to measure the fair value of an asset or liability?

A : The market approach.

B : The impairment approach.

C : The income approach.

D : The cost approach.

Answer: B

Question 5

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

Page: 1 / 33

Total 165 Questions | Updated On: Apr 28, 2026

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