AICPA考试FAR模拟资料三

AICPA考试FAR模拟资料三

1.Under IFRS,when a change in accounting principle is made in the current period,the cumulative effect adjustment for the change is shown as an adjuestmengt to the beginning retained earnings on the balance sheet:

a.As of the date of the change

b.At the beginning of the prior period

c.At the end of the prior period

d.At the end of the current period

【答案】b

【解析】Choice b is correct.Under IFRS,when an entity records a change in accounting principle, the entity must(at a minimum)present three balance sheets(end of current period,end of prior period,and beginning of prior period)and two of each other financial statement(current period and prior period).The cumulative effect adjustment is shown as an adjustment to beginning retained earnings on the balance sheet for the beginning of the prior period.

Choice1is incorrect.The cumulative effect of the change is not reported as an adjustment to beginning retained earnings on the date the decision is made.

Choice3is incorrect.The cumulative effect of the change is not reported as an adjustment to beginning retained earnings at the end of the prior period.

Choice4is incorrect.The cumulative effect of the change is not reported as an adjustment to beginning retained earnings at the end of the period in which the decision is made.

2.According to the FASB conceptual framework,which of the following would cause

earnings to differ from comprehensive income?

a.Dividends declared but not paid.

b.Realized gain from sale of held-maturity security.

c.Unrealized holding loss from available-for-sale securities.

d.Unrealized holding gain from trading securities

【答案】c

【解析】Choice3is correct.Unrealized holding loss from available-for-sale securities is a component of other comprehensive income,which is not included in net income

and would thus cause earnings to differ from comprehensive income.

Choice2and4are components of earnings and of comprehensive income.Choice1

is excluded from both earnings and comprehensive income.

3.In computing the weight-average number of outstanding during the year,which of the following midyear event must be treated as if it had occurred at beginning of the year?

a.Purchase of treasury stock.

b.Declaration and distribution of stock dividend.

c.Sale of additional common stock.

d.Sale of preferred convertible stock.

【答案】b

【解析】Choice2is correct.In computing the weight-average number of shares outstanding for earning per share(EPS)determination,a stock dividend(or a stock split)to the same class of shareholders must be retroactively recognized and treated as if it had occurred at the beginning of the year.In addition,EPS for all prior periods presented must be adjusted as though the shares had been outstanding for all periods presented.

Choice1,3,and4are incorrect.The issuance(sale)of new shares and repurchases of a

firm is shares(treasury stock)are include in the weighted-average number of shares outstanding from the date of the sale or purchase of the shares.

4.In computing the weight-average number of outstanding during the year,which of the following midyear event must be treated as if it had occurred at beginning of the year?

a.Purchase of treasury stock.

b.Declaration and distribution of stock dividend.

c.Sale of additional common stock.

d.Sale of preferred convertible stock.

【答案】b

【解析】Choice2is correct.In computing the weight-average number of shares outstanding for earning per share(EPS)determination,a stock dividend(or a stock split)to the same class of shareholders must be retroactively recognized and treated as if it had occurred at the beginning of the year.In addition,EPS for all prior periods presented must be adjusted as though the shares had been outstanding for all periods presented.

Choice1,3,and4are incorrect.The issuance(sale)of new shares and repurchases of a

firm is shares(treasury stock)are include in the weighted-average number of shares outstanding from the date of the sale or purchase of the shares.