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: Jun 06, 2025

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Question 1

If a company is not presenting comparative financial statements, the correction of an error in the financial statements of a prior period should be reported, net of applicable income taxes, in the current:

A : Retained earnings statement after net income but before dividends.

B : Retained earnings statement as an adjustment of the opening balance.

C : Income statement after income from continuing operations and before extraordinary items.

D : Income statement after income from continuing operations and after extraordinary items.

Answer: B

Question 2

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

Question 3

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 4

How should the effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate be reported?

A : As a component of income from continuing operations.

B : By restating the financial statements of all prior periods presented.

C : As a correction of an error.

D : By footnote disclosure only.

Answer: A

Question 5

How should the effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate be reported?

A : As a component of income from continuing operations.

B : By restating the financial statements of all prior periods presented.

C : As a correction of an error.

D : By footnote disclosure only.

Answer: A

Page: 1 / 33

Total 165 Questions | Updated On: Jun 06, 2025

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