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CPA Exam Review Questions with solutions
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Exam of 3 pages for the course CPA at CPA (CPA Exam Review)
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CPA Exam ReviewManagerial Accounting deals with _____ accounting, while Financial Accounting deals
with _____. - answerInternal; External
True or False:
Managerial accounting must follow GAAP. - answerFalse; Internal accounting so it does
not have to follow GAAP.
The assumption that a company or other entity will be able to continue operating for a
time that is sufficient to carry out its commitments and obligations. - answerGoing
Concern
The assumption that a company's business cycle can be broken into periods (i.e. one
year, one quarter, etc.) - answerPeriodicity
Accounting is reported as units of currency (i.e. dollars and cents); not indexed for
inflation - answerMonetary Unit
An accounting principle that allows the accountant to keep business separate from
personal (excludes legal) - answerEconomic Entity
What is the general rule for capitalization of Research & Development costs? -
answerYou can't capitalize R&D
True or False:
You accrue a contingency deemed to be reasonably possible - answerFalse: you
accrue contingencies deemed to be probable.
FASB ASC includes guidance for the _____. - answerSEC
Accounting information that enables comparing a company's reporting of one
accounting period to another. - answerConsistency
Principle that requires companies to match expenses with related revenues -
answerMatching
What the company actually does vs. what the company says it does. -
answerSubstance over form
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