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AICPA CPA-Financial Exam Questions
- 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.
Free AICPA CPA-Financial Exam Actual Questions
Note: Premium Questions for CPA-Financial were last updated On Feb. 27, 2026 (see below)
During the first quarter of 1993, Tech Co. had income before taxes of $200,000, and its effective income tax rate was 15%. Tech's 1992 effective annual income tax rate was 30%, but Tech expects its 1993 effective annual income tax rate to be 25%. In its first quarter interim income statement, what amount of income tax expense should Tech report?
Choice 'c' is correct. Interim period tax expense is the estimated annual effective tax rate (25% in this case) applied to the year-to-date income before taxes minus the tax expense recognized in previous interim periods. Since this question involves the first quarter, there are no previous interim periods. 25% $200,000 = $50,000. FIN 18, para. 16
Choice 'a' is incorrect. Income tax expense is reported in interim income statements.
Choice 'b' is incorrect. The 1993 annual estimated tax rate, not the first quarter effective tax rate, is used to calculate income tax expense for interim statements.
Choice 'd' is incorrect. The 1993 annual estimated tax rate, not the 1992 annual effective tax rate, is used to calculate income tax expense for interim statements.
Which of the following facts concerning fixed assets should be included in the summary of significant accounting policies?
Choice 'c' is correct. Yes - No.
Yes - 'Depreciation methods' should be disclosed in the 'summary of significant accounting policies.'
No - Composition of fixed assets (or any other account) should not be disclosed in the 'summary of significant accounting policies.'
Brock Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative.
The adjusted trial balance at December 31, 1989 included the following expense and loss accounts:
One-half of the rented premises is occupied by the sales department. Brock's total selling expenses for 1989 are:
Note: Only one-half of rent for office space was used for sales office.
Choice 'a' is correct. $480,000.
In Baer Food Co.'s 1990 single-step income statement, the section titled "Revenues" consisted of the following:
In the revenues section of its 1990 income statement, Baer Food should have reported total revenues of:
Choice 'd' is correct. $201,900.
The various amounts from discontinued operations should be included in discontinued operations, not in revenues.
Earnings per share data should be reported on the income statement for:
Choice 'b' is correct. Yes - Yes.
Both the 'extraordinary items' and 'income before extraordinary items' should be shown with an earnings per share number on the income statement.
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