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AICPA CPA-Financial Exam Questions

Exam Name: CPA Financial Accounting and Reporting
Exam Code: CPA-Financial CPA
Related Certification(s): AICPA Certified Public Accountant Certification
Certification Provider: AICPA
Actual Exam Duration: 180 Minutes
Number of CPA-Financial practice questions in our database: 163 (updated: Apr. 04, 2025)
Expected CPA-Financial Exam Topics, as suggested by AICPA :
  • Topic 1: Financial Statement Concepts
  • Topic 2: General Principles of Financial Statement Presentation and Accounting Policies
  • Topic 3: Special Accounting Considerations for Certain Financial Assets and Liabilities.
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Nina

5 days ago
FAR exam success! Pass4Success provided excellent, time-saving study materials. Grateful for the help!
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Jackie

1 months ago
Just conquered the AICPA CPA FAR! Pass4Success, your exam questions were spot on. Thanks for the efficient prep!
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Louvenia

2 months ago
CPA FAR exam: check! Pass4Success, thank you for the relevant practice materials. They made all the difference!
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Arlyne

3 months ago
The CPA FAR exam was challenging, but I passed with the help of Pass4Success. A question that confused me was related to select transactions. It asked about the accounting for leases under the new standard. I wasn't confident, but I managed to pass.
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Albert

3 months ago
Passed the FAR exam today! Pass4Success, your practice questions were invaluable. Couldn't have done it without you!
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Melvin

4 months ago
I am so happy to have passed the CPA FAR exam, and Pass4Success practice questions were a big part of my success. One question that stumped me was about select financial statement accounts. It asked about the impairment of long-lived assets. I wasn't sure of my answer, but I passed.
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Whitley

4 months ago
AICPA CPA FAR - done and dusted! Pass4Success, you guys rock! Your questions were key to my success.
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Jordan

4 months ago
Passing the CPA FAR exam was a great achievement, and I couldn't have done it without Pass4Success. A difficult question was about state and local governments. It asked how to report fund balances in governmental funds. I had to guess, but I still passed.
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Malcolm

5 months ago
I passed the CPA FAR exam, and Pass4Success practice questions were invaluable. One question that gave me pause was about the conceptual framework. It asked how the cost constraint affects financial reporting. I wasn't entirely certain, but I made it through.
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Juliann

5 months ago
Thrilled to have passed the CPA FAR! Pass4Success questions were incredibly similar to the real thing. Great resource!
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Lashaunda

5 months ago
Thanks to Pass4Success for providing relevant exam questions! Their materials helped me prepare efficiently and pass the Lashaunda FAR exam in a short time. Highly recommended!
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Ivette

5 months ago
The CPA FAR exam was tough, but I passed with the help of Pass4Success practice questions. A question that puzzled me was related to select transactions. It asked about the criteria for recognizing revenue under the new revenue recognition standard. I wasn't sure if I got it right, but I passed.
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Sherita

6 months ago
I am ecstatic to have passed the CPA FAR exam, and Pass4Success was a big help. One challenging question was about select financial statement accounts. It asked about the proper treatment of deferred tax assets and liabilities. I wasn't confident in my response, but I still succeeded.
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Xenia

6 months ago
Congratulations again! Bonds can be tricky. Make sure you can handle calculations for bond issuance, amortization, and early extinguishment.
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Kasandra

6 months ago
FAR exam was tough, but I made it! Pass4Success materials were a lifesaver. Highly recommend for quick prep.
upvoted 0 times
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Arlyne

6 months ago
Passing the CPA FAR exam was a huge relief, thanks to the practice questions from Pass4Success. I remember a tricky question about state and local governments. It asked how to account for infrastructure assets under the modified approach. I had to think hard, but I got through it.
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Tamra

7 months ago
The bonds payable questions were challenging, but Pass4Success examples made it click. So glad I passed!
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Eloisa

7 months ago
I was thrilled to pass the CPA Financial Accounting and Reporting exam, and I owe a lot to Pass4Success practice questions. One question that stumped me was about the conceptual framework. It asked how qualitative characteristics like relevance and faithful representation influence financial reporting. I wasn't entirely sure of my answer, but I still managed to pass.
upvoted 0 times
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Jeff

7 months ago
Just passed the AICPA CPA FAR exam! Thanks Pass4Success for the spot-on practice questions. Saved me so much time!
upvoted 0 times
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Albina

8 months ago
Passing the AICPA CPA Financial Accounting and Reporting exam was a great accomplishment for me, and I couldn't have done it without the help of Pass4Success practice questions. One question that I found particularly tricky was related to the disclosure requirements for financial statements. It required me to understand the importance of transparency in financial reporting and how it impacts stakeholders. Despite my initial uncertainty, I was able to reason through the question and select the correct response.
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Virgie

9 months ago
My experience taking the AICPA CPA Financial Accounting and Reporting exam was intense, but I managed to pass with the assistance of Pass4Success practice questions. One question that I remember from the exam was about Financial Statement Concepts. It asked me to identify the key components of a financial statement and explain how they are interconnected. It was a challenging question, but I was able to answer it confidently.
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William

9 months ago
Just passed the CPA FAR exam! Be ready for questions on revenue recognition principles, especially regarding multi-element arrangements. Focus on understanding the five-step model and its application. Thanks to Pass4Success for the spot-on practice questions that helped me prepare efficiently!
upvoted 0 times
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Fairy

10 months ago
I passed the AICPA CPA Financial Accounting and Reporting exam with the help of Pass4Success practice questions. The exam was challenging, but I felt well-prepared thanks to the practice questions. One question that stood out to me was related to the General Principles of Financial Statement Presentation and Accounting Policies. It required me to apply my knowledge of accounting policies to a specific scenario, but I was able to work through it and select the correct answer.
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Free AICPA CPA-Financial Exam Actual Questions

Note: Premium Questions for CPA-Financial were last updated On Apr. 04, 2025 (see below)

Question #1

Which of the following is correct concerning financial statement disclosure of accounting policies?

Reveal Solution Hide Solution
Correct Answer: B

Choice 'b' is correct. Disclosure of accounting policies (and all other disclosure also) is an integral part of the financial statements.

Choice 'a' is incorrect. For disclosure of accounting policies, disclosure should not be limited to principles and methods peculiar to the industry in which the company operates. All material accounting policies should be disclosed.

Choice 'c' is incorrect. For disclosure of accounting policies, the format and location of accounting policies are not fixed by GAAP. Accounting policy disclosures are normally Note 1, but that is a (reasonable and very general) practice and not a 'rule.' It does make sense to disclose the 'why' before the 'what.'

Choice 'd' is incorrect. Disclosure of accounting policies should not duplicate details disclosed elsewhere in the financial statements.

Interim Financial Reporting


Question #2

On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed, working closely with Quo's president and outside accountants, made changes in accounting policies, corrected several errors dating from 1992 and before, and instituted new accounting policies.

Quo's 1993 financial statements will be presented in comparative form with its 1992 financial statements.

This question represents one of Quo's transactions. List A represents possible clarifications of these transactions as: a change in accounting principle, a change in accounting estimate, a correction of an error in previously presented financial statements, or neither an accounting change nor an accounting error.

Item to Be Answered

Quo sells extended service contracts on its products. Because related services are performed over several years, in 1993 Quo changed from the cash method to the accrual method of recognizing income from these service contracts.

List A (Select one)

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Correct Answer: C

Choice 'c' is correct. Change from the cash method to the accrual method is a correction of an error in previously presented financial statements.


Question #3

Which of the following factors determines whether an identified segment of an enterprise should be reported in the enterprise's financial statements under SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information?

1. The segment's assets constitute more than 10% of the combined assets of all operating segments.

2. The segment's liabilities constitute more than 10% of the combined liabilities of all operating segments.

Reveal Solution Hide Solution
Correct Answer: A

Choice 'a' is correct. For segment reporting, if an identified segment's assets constitute more than 10% of the combined assets of all operating segments, the segment should be reported. The same rule does not apply for the segment's liabilities. The candidate does have to remember the 10% and also the 10% of 'what.'

Choice 'b' is incorrect. For segment reporting, if an identified segment's assets constitute more than 10% of the combined assets of all operating segments, the segment should be reported. The same rule does not apply for the segment's liabilities.

Choice 'c' is incorrect. For segment reporting, if an identified segment's assets constitute more than 10% of the combined assets of all operating segments, the segment should be reported. The same rule does not apply for the segment's liabilities, so the correct answer cannot be 'Both.'

Choice 'd' is incorrect. For segment reporting, if an identified segment's assets constitute more than 10% of the combined assets of all operating segments, the segment should be reported. The correct answer cannot be 'Neither.'


Question #4

On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed, working closely with Quo's president and outside accountants, made changes in accounting policies, corrected several errors dating from 1992 and before, and instituted new accounting policies.

Quo's 1993 financial statements will be presented in comparative form with its 1992 financial statements.

This question represents one of Quo's transactions. List B represents the general accounting treatment required for these transactions. These treatments are:

* Cumulative effect approach - Include the cumulative effect of the adjustment resulting from the accounting change or error correction in the 1993 financial statements, and do not restate the 1992 financial statements.

* Retroactive or retrospective restatement approach - Restate the 1992 financial statements and adjust 1992 beginning retained earnings if the error or change affects a period prior to 1992.

* Prospective approach - Report 1993 and future financial statements on the new basis but do not restate 1992 financial statements.

Item to Be Answered

Quo manufactures heavy equipment to customer specifications on a contract basis. On the basis that it is preferable, accounting for these long-term contracts was switched from the completed-contract method to the percentage-of-completion method.

List B (Select one)

Reveal Solution Hide Solution
Correct Answer: B

Choice 'B' is correct. Changes in accounting principle are handled 'retrospectively.' Beginning retained earnings of the earliest year presented is adjusted for the cumulative effect of the change and all prior year financial statements are restated.


Question #5

Which of the following describes how comprehensive income should be reported?

Reveal Solution Hide Solution
Correct Answer: C

Choice 'c' is correct.

Comprehensive income must be presented in one of three formats:

1. In a combined statement of income and comprehensive income;

2. In a separate statement of comprehensive income that begins with net income; or

3. In a statement of changes in equity.

Choices 'a', 'b', and 'd' are incorrect, per the above.

Balance Sheet and Disclosures Overview


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