Advanced Accounting | Comprehensive Year 3 Review
Advanced Accounting Exam Prep
Year 3 Comprehensive Exam Preparation |
Questions, Solutions and Rationales
Undergraduate - Year 3 (Advanced Review) | Original practice questions covering
Income Taxes, Pensions, Stock Compensation, EPS, Foreign Currency, Consolidation,
Hedging and Cash Flows
Field Detail
Program B.Sc./B.B.A. in Accounting
Course Advanced Accounting
Academic Year Year 3 (Advanced)
Coverage Original Practice Questions Across 11 Core
Financial Accounting Topics (Coverage may
vary by institution)
Resource Type Exam Preparation
Question Count 125 original practice questions
Applicable Framework Primarily U.S. GAAP; explicit IFRS contrasts
noted where the frameworks diverge
significantly
Quesvia 1
,Advanced Accounting | Comprehensive Year 3 Review
Learning Objectives
By the end of this resource, you should be able to:
Compute deferred tax assets and liabilities arising from temporary differences and
apply the valuation allowance criterion.
Distinguish temporary differences from permanent differences and reconcile the
effective tax rate to the statutory tax rate.
Compute the components of net periodic pension cost and determine the funded
status of a defined benefit plan.
Measure and recognize compensation expense for stock-based awards under the
fair-value-based method.
Apply the treasury stock method and the if-converted method to compute diluted
earnings per share.
Distinguish a change in accounting principle, a change in accounting estimate, and
the correction of an error, and apply the correct transition method to each.
Distinguish foreign currency transaction gains and losses from translation
adjustments and apply the current rate method.
Apply the acquisition method to measure identifiable assets acquired, liabilities
assumed, and goodwill in a business combination.
Prepare introductory consolidation entries, including elimination of the parent's
investment account and allocation of income to a noncontrolling interest.
Explain how derivatives are recognized and measured, and distinguish the
accounting for a fair value hedge from a cash flow hedge.
Apply the recognition and measurement principles unique to interim financial
reporting and apply the criteria for identifying a reportable operating segment.
Prepare the operating activities section of the statement of cash flows using the
direct method, and reconcile net income to operating cash flow in a setting
involving multiple non-cash items.
Quesvia 2
,Advanced Accounting | Comprehensive Year 3 Review
How to Use This Resource
This resource assumes a solid working knowledge of Year 1 and Year 2 material -
basic and intermediate financial accounting through leases, equity, EPS, and the
indirect-method statement of cash flows. Review those resources first if any of that
feels unfamiliar.
Year 3 is weighted toward Analyze and Evaluate questions. Expect multi-step,
integrated scenarios rather than single-fact recall - read each question fully before
selecting an answer.
Review the Standards Quick-Reference and the Key U.S. GAAP vs. IFRS
Divergences tables before starting each topic's questions; several Year 3 topics
hinge on knowing exactly where the two frameworks disagree.
Work through the High-Yield Concept Review for each topic before attempting that
topic's questions.
Attempt every question yourself before checking the answer key, and read the full
rationale for every question, including the analysis of every incorrect option.
For calculation questions, re-perform the calculation independently - Year 3
calculations frequently combine two or more steps, and several of this year's topics
(deferred taxes, pensions, stock compensation) reflect accounting updates from
the last decade that older study materials often still get wrong.
Use the Student Answer Sheet to simulate timed conditions, then check your
results against the Suggested Score Interpretation.
Use the Final Revision Checklist a few days before your assessment as a topic-
by-topic self-check.
Quesvia 3
, Advanced Accounting | Comprehensive Year 3 Review
Standards Quick-Reference
This table maps each Year 3 topic to its primary U.S. GAAP codification reference and
its closest IFRS counterpart, for quick lookup while working through the questions.
Topic Primary U.S. GAAP Closest IFRS Counterpart
Reference
Income Taxes ASC 740 IAS 12
Pensions and Other ASC 715 IAS 19
Postretirement Benefits
Stock-Based Compensation ASC 718 IFRS 2
Earnings Per Share ASC 260 IAS 33
Accounting Changes and ASC 250 IAS 8
Error Corrections
Foreign Currency Matters ASC 830 IAS 21
Business Combinations ASC 805 IFRS 3
Consolidation ASC 810 IFRS 10
Derivatives and Hedging ASC 815 IFRS 9
Interim Reporting ASC 270 IAS 34
Segment Reporting ASC 280 IFRS 8
Statement of Cash Flows ASC 230 IAS 7
Quesvia 4
Advanced Accounting Exam Prep
Year 3 Comprehensive Exam Preparation |
Questions, Solutions and Rationales
Undergraduate - Year 3 (Advanced Review) | Original practice questions covering
Income Taxes, Pensions, Stock Compensation, EPS, Foreign Currency, Consolidation,
Hedging and Cash Flows
Field Detail
Program B.Sc./B.B.A. in Accounting
Course Advanced Accounting
Academic Year Year 3 (Advanced)
Coverage Original Practice Questions Across 11 Core
Financial Accounting Topics (Coverage may
vary by institution)
Resource Type Exam Preparation
Question Count 125 original practice questions
Applicable Framework Primarily U.S. GAAP; explicit IFRS contrasts
noted where the frameworks diverge
significantly
Quesvia 1
,Advanced Accounting | Comprehensive Year 3 Review
Learning Objectives
By the end of this resource, you should be able to:
Compute deferred tax assets and liabilities arising from temporary differences and
apply the valuation allowance criterion.
Distinguish temporary differences from permanent differences and reconcile the
effective tax rate to the statutory tax rate.
Compute the components of net periodic pension cost and determine the funded
status of a defined benefit plan.
Measure and recognize compensation expense for stock-based awards under the
fair-value-based method.
Apply the treasury stock method and the if-converted method to compute diluted
earnings per share.
Distinguish a change in accounting principle, a change in accounting estimate, and
the correction of an error, and apply the correct transition method to each.
Distinguish foreign currency transaction gains and losses from translation
adjustments and apply the current rate method.
Apply the acquisition method to measure identifiable assets acquired, liabilities
assumed, and goodwill in a business combination.
Prepare introductory consolidation entries, including elimination of the parent's
investment account and allocation of income to a noncontrolling interest.
Explain how derivatives are recognized and measured, and distinguish the
accounting for a fair value hedge from a cash flow hedge.
Apply the recognition and measurement principles unique to interim financial
reporting and apply the criteria for identifying a reportable operating segment.
Prepare the operating activities section of the statement of cash flows using the
direct method, and reconcile net income to operating cash flow in a setting
involving multiple non-cash items.
Quesvia 2
,Advanced Accounting | Comprehensive Year 3 Review
How to Use This Resource
This resource assumes a solid working knowledge of Year 1 and Year 2 material -
basic and intermediate financial accounting through leases, equity, EPS, and the
indirect-method statement of cash flows. Review those resources first if any of that
feels unfamiliar.
Year 3 is weighted toward Analyze and Evaluate questions. Expect multi-step,
integrated scenarios rather than single-fact recall - read each question fully before
selecting an answer.
Review the Standards Quick-Reference and the Key U.S. GAAP vs. IFRS
Divergences tables before starting each topic's questions; several Year 3 topics
hinge on knowing exactly where the two frameworks disagree.
Work through the High-Yield Concept Review for each topic before attempting that
topic's questions.
Attempt every question yourself before checking the answer key, and read the full
rationale for every question, including the analysis of every incorrect option.
For calculation questions, re-perform the calculation independently - Year 3
calculations frequently combine two or more steps, and several of this year's topics
(deferred taxes, pensions, stock compensation) reflect accounting updates from
the last decade that older study materials often still get wrong.
Use the Student Answer Sheet to simulate timed conditions, then check your
results against the Suggested Score Interpretation.
Use the Final Revision Checklist a few days before your assessment as a topic-
by-topic self-check.
Quesvia 3
, Advanced Accounting | Comprehensive Year 3 Review
Standards Quick-Reference
This table maps each Year 3 topic to its primary U.S. GAAP codification reference and
its closest IFRS counterpart, for quick lookup while working through the questions.
Topic Primary U.S. GAAP Closest IFRS Counterpart
Reference
Income Taxes ASC 740 IAS 12
Pensions and Other ASC 715 IAS 19
Postretirement Benefits
Stock-Based Compensation ASC 718 IFRS 2
Earnings Per Share ASC 260 IAS 33
Accounting Changes and ASC 250 IAS 8
Error Corrections
Foreign Currency Matters ASC 830 IAS 21
Business Combinations ASC 805 IFRS 3
Consolidation ASC 810 IFRS 10
Derivatives and Hedging ASC 815 IFRS 9
Interim Reporting ASC 270 IAS 34
Segment Reporting ASC 280 IFRS 8
Statement of Cash Flows ASC 230 IAS 7
Quesvia 4
