Home->CPA

Larry, who uses the accrual basis of accounting, hired an extra driver to help him make deliveries in December. The extra driver only works from December 1st through the 31st . Larry pays the driver on January 5th, but the expense is shown on the December income statement. Why? Mark one answer:

(A)Cost benefit analysis

(B)Matching principle

(C)Cost principle

(D)Going concern principle

(E)Gross profit margin analysis

Which one of the following would constitute a highly inflationary economy when determining the functional currency of a foreign entity?

(A)20% inflation for each of the past 5 years. (B)30% inflation for each of the past 3 years. (C)35% inflation for each of the past 3 years. (D)20%, 35%, and 40% inflation, respectively, for each of the past 3 years.

Correct Answer: C

What are the CPA Exam Blueprints?

The CPA Exam Blueprints cover the content eligible for testing in each Exam section. The Blueprints are published one to two times per year. They detail the minimum level of knowledge and skills you must have to qualify for initial licensure. Within the Blueprints, you will find the following information for each Exam section:

• Content organized by Area, Group and Topic along with score weighting
• Sample task statements that represent what you may be asked to do when testing
• Skill levels at which tasks are tested
• Reference materials that support the sample task statements
• Number of item types you must complete (multiple-choice questions, task-based simulations and written communication tasks)
• Score weighting of each item type

A static budget contains which of the following amounts?

(A)Actual costs for actual output. (B)Actual costs for budgeted output. (C)Budgeted costs for actual output. (D)Budgeted costs for budgeted output.

Correct Answer: D