2025 Pass4itsure FINANCIAL-ACCOUNTING-AND-REPORTING Dumps

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FINANCIAL-ACCOUNTING-AND-REPORTING Online Practice Questions and Answers

Questions 1

Conceptually, interim financial statements can be described as emphasizing:

A. Timeliness over reliability.

B. Reliability over relevance.

C. Relevance over comparability.

D. Comparability over neutrality.

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Questions 2

Which of the following qualifies as an operating segment?

A. Corporate headquarters, which oversees $1 billion in sales for the entire company.

B. North American segment, whose assets are 12% of the company's assets of all segments, and management reports to the chief operating officer.

C. South American segment, whose results of operations are reported directly to the chief operating officer, and has 5% of the company's assets, 9% of revenues, and 8% of the profits.

D. Eastern Europe segment, which reports its results directly to the manager of the European division, and has 20% of the company's assets, 12% of revenues, and 11% of profits.

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Questions 3

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 As a result of a production breakthrough, Quo determined that manufacturing equipment previously depreciated over 15 years should be depreciated over 20 years.

List A (Select one)

A. Change in accounting principal.

B. Change in accounting estimate.

C. Correction of an error in previously presented financial statements.

D. Neither an accounting change nor an accounting error.

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