CPA – FAR QUIZ WITH COMPLETE
ANSWERS [GRADED A+]
Under Regulation S-X, an entity's interim financial statements filed with the
SEC should include all of the following, except:
A. An income statement for the cumulative 12 month period ending during
the most recent fiscal quarter.
B. An income statement for the period between the end of the preceding
fiscal year and the end of the most recent fiscal quarter.
C. A statement of cash flows for the most recent fiscal quarter.**
D. A balance sheet as of the end of the preceding fiscal year. - ✔✔Choice
C is correct. Interim financial statements filed with the SEC would not
include a statement of cash flows for the most recent fiscal quarter, but
should include statements of cash flows for the period between the end of
©morren2026/2027.Year published 2026.
,the preceding fiscal year and the end of the most recent fiscal quarter, and
for the corresponding period for the preceding fiscal year.
Topper Company began operations during the current year and
experienced the following events:
I.Unrealized holding gains from trading debt securities of $12,000.
II.Realized gains from selling available-for-sale debt securities of $15,000.
III.Unrealized holding gains from available-for-sale debt securities of
$20,000.
Topper's tax rate is 30%.
In Toppers December 31 balance sheet, Accumulated Other
Comprehensive Income would be:
A.$47,000
B.$20,000
C.$14,000**
D.$32,900 - ✔✔Unrealized gain on available-for-sale debt $20K less tax
rate (20K * .3) 6K = 14K.. Correct answer is C.
Comprehensive income is PUFI
©morren2026/2027.Year published 2026.
, Are gains and losses on the disposal of assets shown on a "gross basis"
(where both the sale proceeds and the net book value of the disposed
asset are reported) or on the "net basis" (where only the difference
between the sale price and the net book value of the disposed asset is
reported)? - ✔✔Gains and losses are reported at their net amount
(proceeds less net book value).
How does a "multi-step" income statement differ from a "single step"
income statement? - ✔✔- A multiple-step income statement reports
operating revenues and expenses separately from nonoperating revenues
and expenses and other gains and losses.
- On a single-step income statement's presentation of income from
continuing operations, total expenses are subtracted from total revenues
without seperation between operating and nonoperating revenues and
expenses.
The gain (loss) from discontinued operations can consist of - ✔✔An
impairment loss, a gain (loss) from actual operations, and gain (loss) on
disposal
©morren2026/2027.Year published 2026.
ANSWERS [GRADED A+]
Under Regulation S-X, an entity's interim financial statements filed with the
SEC should include all of the following, except:
A. An income statement for the cumulative 12 month period ending during
the most recent fiscal quarter.
B. An income statement for the period between the end of the preceding
fiscal year and the end of the most recent fiscal quarter.
C. A statement of cash flows for the most recent fiscal quarter.**
D. A balance sheet as of the end of the preceding fiscal year. - ✔✔Choice
C is correct. Interim financial statements filed with the SEC would not
include a statement of cash flows for the most recent fiscal quarter, but
should include statements of cash flows for the period between the end of
©morren2026/2027.Year published 2026.
,the preceding fiscal year and the end of the most recent fiscal quarter, and
for the corresponding period for the preceding fiscal year.
Topper Company began operations during the current year and
experienced the following events:
I.Unrealized holding gains from trading debt securities of $12,000.
II.Realized gains from selling available-for-sale debt securities of $15,000.
III.Unrealized holding gains from available-for-sale debt securities of
$20,000.
Topper's tax rate is 30%.
In Toppers December 31 balance sheet, Accumulated Other
Comprehensive Income would be:
A.$47,000
B.$20,000
C.$14,000**
D.$32,900 - ✔✔Unrealized gain on available-for-sale debt $20K less tax
rate (20K * .3) 6K = 14K.. Correct answer is C.
Comprehensive income is PUFI
©morren2026/2027.Year published 2026.
, Are gains and losses on the disposal of assets shown on a "gross basis"
(where both the sale proceeds and the net book value of the disposed
asset are reported) or on the "net basis" (where only the difference
between the sale price and the net book value of the disposed asset is
reported)? - ✔✔Gains and losses are reported at their net amount
(proceeds less net book value).
How does a "multi-step" income statement differ from a "single step"
income statement? - ✔✔- A multiple-step income statement reports
operating revenues and expenses separately from nonoperating revenues
and expenses and other gains and losses.
- On a single-step income statement's presentation of income from
continuing operations, total expenses are subtracted from total revenues
without seperation between operating and nonoperating revenues and
expenses.
The gain (loss) from discontinued operations can consist of - ✔✔An
impairment loss, a gain (loss) from actual operations, and gain (loss) on
disposal
©morren2026/2027.Year published 2026.
