[["Question: Which of the following procedures does a CPA usually perform when reviewing the financial statements of a nonissuer?\nChoices:\nA. Make inquiries of management concerning restrictions on the availability of cash balances.\nB. Communicate deficiencies in the design of internal control to the entity's audit committee.\nC. Examine trend analysis to determine the appropriateness of the CPA's assessment of detection risk.\nD. Evaluate management's plans for dealing with negative trends and financial difficulties.\nAnswer:", " Make inquiries of management concerning restrictions on the availability of cash balances."], ["Question: Which of the following procedures does a CPA usually perform when reviewing the financial statements of a nonissuer?\nChoices:\nA. Make inquiries of management concerning restrictions on the availability of cash balances.\nB. Communicate deficiencies in the design of internal control to the entity's audit committee.\nC. Examine trend analysis to determine the appropriateness of the CPA's assessment of detection risk.\nD. Evaluate management's plans for dealing with negative trends and financial difficulties.\nAnswer:", " Communicate deficiencies in the design of internal control to the entity's audit committee."], ["Question: Which of the following procedures does a CPA usually perform when reviewing the financial statements of a nonissuer?\nChoices:\nA. Make inquiries of management concerning restrictions on the availability of cash balances.\nB. Communicate deficiencies in the design of internal control to the entity's audit committee.\nC. Examine trend analysis to determine the appropriateness of the CPA's assessment of detection risk.\nD. Evaluate management's plans for dealing with negative trends and financial difficulties.\nAnswer:", " Examine trend analysis to determine the appropriateness of the CPA's assessment of detection risk."], ["Question: Which of the following procedures does a CPA usually perform when reviewing the financial statements of a nonissuer?\nChoices:\nA. Make inquiries of management concerning restrictions on the availability of cash balances.\nB. Communicate deficiencies in the design of internal control to the entity's audit committee.\nC. Examine trend analysis to determine the appropriateness of the CPA's assessment of detection risk.\nD. Evaluate management's plans for dealing with negative trends and financial difficulties.\nAnswer:", " Evaluate management's plans for dealing with negative trends and financial difficulties."], ["Question: Large City does not use the modified approach to account for roads. At the beginning of the current year the city spent $800000 on new roads. The roads have a 20-year useful life. What amount should Large City report as an expense related to the new roads in the statement of activities for the current year?\nChoices:\nA. $0\nB. $20,000\nC. $40,000\nD. 800000\nAnswer:", " $0"], ["Question: Large City does not use the modified approach to account for roads. At the beginning of the current year the city spent $800000 on new roads. The roads have a 20-year useful life. What amount should Large City report as an expense related to the new roads in the statement of activities for the current year?\nChoices:\nA. $0\nB. $20,000\nC. $40,000\nD. 800000\nAnswer:", " $20,000"], ["Question: Large City does not use the modified approach to account for roads. At the beginning of the current year the city spent $800000 on new roads. The roads have a 20-year useful life. What amount should Large City report as an expense related to the new roads in the statement of activities for the current year?\nChoices:\nA. $0\nB. $20,000\nC. $40,000\nD. 800000\nAnswer:", " $40,000"], ["Question: Large City does not use the modified approach to account for roads. At the beginning of the current year the city spent $800000 on new roads. The roads have a 20-year useful life. What amount should Large City report as an expense related to the new roads in the statement of activities for the current year?\nChoices:\nA. $0\nB. $20,000\nC. $40,000\nD. 800000\nAnswer:", " 800000"], ["Question: A government entity is required to include a statement of cash flows in which of the following financial statements?\nChoices:\nA. Governmental fund financial statements.\nB. Government-wide financial statements.\nC. Proprietary fund financial statements.\nD. Fiduciary fund financial statements.\nAnswer:", " Governmental fund financial statements."], ["Question: A government entity is required to include a statement of cash flows in which of the following financial statements?\nChoices:\nA. Governmental fund financial statements.\nB. Government-wide financial statements.\nC. Proprietary fund financial statements.\nD. Fiduciary fund financial statements.\nAnswer:", " Government-wide financial statements."], ["Question: A government entity is required to include a statement of cash flows in which of the following financial statements?\nChoices:\nA. Governmental fund financial statements.\nB. Government-wide financial statements.\nC. Proprietary fund financial statements.\nD. Fiduciary fund financial statements.\nAnswer:", " Proprietary fund financial statements."], ["Question: A government entity is required to include a statement of cash flows in which of the following financial statements?\nChoices:\nA. Governmental fund financial statements.\nB. Government-wide financial statements.\nC. Proprietary fund financial statements.\nD. Fiduciary fund financial statements.\nAnswer:", " Fiduciary fund financial statements."], ["Question: A company that produces a single product using a continuous process had no work in process on April 1. During the month of April 10000 units were started and 9000 completed units were transferred. The ending work-in-process inventory was complete as to materials and 50% complete as to conversion. The cost of direct materials was $114000 and the cost of direct labor amounted to $38000. Manufacturing overhead is assigned at the rate of 50% of direct materials. For the purpose of determining the cost of goods manufactured in April what is the cost per equivalent whole unit?\nChoices:\nA. $23.22\nB. $21.40\nC. $20.90\nD. 15.4\nAnswer:", " $23.22"], ["Question: A company that produces a single product using a continuous process had no work in process on April 1. During the month of April 10000 units were started and 9000 completed units were transferred. The ending work-in-process inventory was complete as to materials and 50% complete as to conversion. The cost of direct materials was $114000 and the cost of direct labor amounted to $38000. Manufacturing overhead is assigned at the rate of 50% of direct materials. For the purpose of determining the cost of goods manufactured in April what is the cost per equivalent whole unit?\nChoices:\nA. $23.22\nB. $21.40\nC. $20.90\nD. 15.4\nAnswer:", " $21.40"], ["Question: A company that produces a single product using a continuous process had no work in process on April 1. During the month of April 10000 units were started and 9000 completed units were transferred. The ending work-in-process inventory was complete as to materials and 50% complete as to conversion. The cost of direct materials was $114000 and the cost of direct labor amounted to $38000. Manufacturing overhead is assigned at the rate of 50% of direct materials. For the purpose of determining the cost of goods manufactured in April what is the cost per equivalent whole unit?\nChoices:\nA. $23.22\nB. $21.40\nC. $20.90\nD. 15.4\nAnswer:", " $20.90"], ["Question: A company that produces a single product using a continuous process had no work in process on April 1. During the month of April 10000 units were started and 9000 completed units were transferred. The ending work-in-process inventory was complete as to materials and 50% complete as to conversion. The cost of direct materials was $114000 and the cost of direct labor amounted to $38000. Manufacturing overhead is assigned at the rate of 50% of direct materials. For the purpose of determining the cost of goods manufactured in April what is the cost per equivalent whole unit?\nChoices:\nA. $23.22\nB. $21.40\nC. $20.90\nD. 15.4\nAnswer:", " 15.4"], ["Question: Which of the following statements would most likely appear in an auditor's engagement letter?\nChoices:\nA. Management is responsible for reporting to us any inadequate provisions for the safeguarding of assets.\nB. We will identify internal controls relevant to specific assertions that may prevent or detect material misstatements.\nC. Management agrees to correct all deficiencies in internal control activities identified by us.\nD. Management is responsible for making all financial records and related information available to us.\nAnswer:", " Management is responsible for reporting to us any inadequate provisions for the safeguarding of assets."], ["Question: Which of the following statements would most likely appear in an auditor's engagement letter?\nChoices:\nA. Management is responsible for reporting to us any inadequate provisions for the safeguarding of assets.\nB. We will identify internal controls relevant to specific assertions that may prevent or detect material misstatements.\nC. Management agrees to correct all deficiencies in internal control activities identified by us.\nD. Management is responsible for making all financial records and related information available to us.\nAnswer:", " We will identify internal controls relevant to specific assertions that may prevent or detect material misstatements."], ["Question: Which of the following statements would most likely appear in an auditor's engagement letter?\nChoices:\nA. Management is responsible for reporting to us any inadequate provisions for the safeguarding of assets.\nB. We will identify internal controls relevant to specific assertions that may prevent or detect material misstatements.\nC. Management agrees to correct all deficiencies in internal control activities identified by us.\nD. Management is responsible for making all financial records and related information available to us.\nAnswer:", " Management agrees to correct all deficiencies in internal control activities identified by us."], ["Question: Which of the following statements would most likely appear in an auditor's engagement letter?\nChoices:\nA. Management is responsible for reporting to us any inadequate provisions for the safeguarding of assets.\nB. We will identify internal controls relevant to specific assertions that may prevent or detect material misstatements.\nC. Management agrees to correct all deficiencies in internal control activities identified by us.\nD. Management is responsible for making all financial records and related information available to us.\nAnswer:", " Management is responsible for making all financial records and related information available to us."], ["Question: An investment project costing $500 today will generate profits of $500 in year five and year ten. If the discount rate is 10%, what is the project\u2019s NPV?\nChoices:\nA. \u2212$3\nB. \u2212$27\nC. $3\nD. $500\nAnswer:", " \u2212$3"], ["Question: An investment project costing $500 today will generate profits of $500 in year five and year ten. If the discount rate is 10%, what is the project\u2019s NPV?\nChoices:\nA. \u2212$3\nB. \u2212$27\nC. $3\nD. $500\nAnswer:", " \u2212$27"], ["Question: An investment project costing $500 today will generate profits of $500 in year five and year ten. If the discount rate is 10%, what is the project\u2019s NPV?\nChoices:\nA. \u2212$3\nB. \u2212$27\nC. $3\nD. $500\nAnswer:", " $3"], ["Question: An investment project costing $500 today will generate profits of $500 in year five and year ten. If the discount rate is 10%, what is the project\u2019s NPV?\nChoices:\nA. \u2212$3\nB. \u2212$27\nC. $3\nD. $500\nAnswer:", " $500"], ["Question: Mentor Co. a U.S. corporation owned 100% of a Swiss corporation. The Swiss franc is the functional currency. The remeasurement of Mentor's financial statements resulted in a $25000 gain at year end. The translation of the financial statements resulted in a $40000 gain at year end. What amount should Mentor recognize as foreign currency gain in its income statement?\nChoices:\nA. $0\nB. $25,000\nC. $40,000\nD. 65000\nAnswer:", " $0"], ["Question: Mentor Co. a U.S. corporation owned 100% of a Swiss corporation. The Swiss franc is the functional currency. The remeasurement of Mentor's financial statements resulted in a $25000 gain at year end. The translation of the financial statements resulted in a $40000 gain at year end. What amount should Mentor recognize as foreign currency gain in its income statement?\nChoices:\nA. $0\nB. $25,000\nC. $40,000\nD. 65000\nAnswer:", " $25,000"], ["Question: Mentor Co. a U.S. corporation owned 100% of a Swiss corporation. The Swiss franc is the functional currency. The remeasurement of Mentor's financial statements resulted in a $25000 gain at year end. The translation of the financial statements resulted in a $40000 gain at year end. What amount should Mentor recognize as foreign currency gain in its income statement?\nChoices:\nA. $0\nB. $25,000\nC. $40,000\nD. 65000\nAnswer:", " $40,000"], ["Question: Mentor Co. a U.S. corporation owned 100% of a Swiss corporation. The Swiss franc is the functional currency. The remeasurement of Mentor's financial statements resulted in a $25000 gain at year end. The translation of the financial statements resulted in a $40000 gain at year end. What amount should Mentor recognize as foreign currency gain in its income statement?\nChoices:\nA. $0\nB. $25,000\nC. $40,000\nD. 65000\nAnswer:", " 65000"], ["Question: Carson owned 40% of the outstanding stock of a C corporation. During a tax year, the corporation reported $400,000 in taxable income and distributed a total of $70,000 in cash dividends to its shareholders. Carson accurately reported $28,000 in gross income on Carson\u2019s individual tax return. If the corporation had been an S corporation and the distributions to the owners had been proportionate, how much income would Carson have reported on Carson\u2019s individual return?\nChoices:\nA. $28,000\nB. $132,000\nC. $160,000\nD. $188,000\nAnswer:", " $28,000"], ["Question: Carson owned 40% of the outstanding stock of a C corporation. During a tax year, the corporation reported $400,000 in taxable income and distributed a total of $70,000 in cash dividends to its shareholders. Carson accurately reported $28,000 in gross income on Carson\u2019s individual tax return. If the corporation had been an S corporation and the distributions to the owners had been proportionate, how much income would Carson have reported on Carson\u2019s individual return?\nChoices:\nA. $28,000\nB. $132,000\nC. $160,000\nD. $188,000\nAnswer:", " $132,000"], ["Question: Carson owned 40% of the outstanding stock of a C corporation. During a tax year, the corporation reported $400,000 in taxable income and distributed a total of $70,000 in cash dividends to its shareholders. Carson accurately reported $28,000 in gross income on Carson\u2019s individual tax return. If the corporation had been an S corporation and the distributions to the owners had been proportionate, how much income would Carson have reported on Carson\u2019s individual return?\nChoices:\nA. $28,000\nB. $132,000\nC. $160,000\nD. $188,000\nAnswer:", " $160,000"], ["Question: Carson owned 40% of the outstanding stock of a C corporation. During a tax year, the corporation reported $400,000 in taxable income and distributed a total of $70,000 in cash dividends to its shareholders. Carson accurately reported $28,000 in gross income on Carson\u2019s individual tax return. If the corporation had been an S corporation and the distributions to the owners had been proportionate, how much income would Carson have reported on Carson\u2019s individual return?\nChoices:\nA. $28,000\nB. $132,000\nC. $160,000\nD. $188,000\nAnswer:", " $188,000"], ["Question: Bailey Co. changed the accounting for insurance expense from the cash basis to the accrual basis in the current year. In January of the prior year Bailey recorded insurance expense of $240000 for the cash purchase of a four-year insurance policy. How should Bailey report the insurance transaction in the current year's financial statements?\nChoices:\nA. As a $180000 debit to prepaid insurance.\nB. As a $60000 debit to insurance expense.\nC. As a $60000 debit to insurance expense a $120000 debit to prepaid asset and $180000 credit to retained earnings.\nD. As a $180000 debit to insurance expense a $120000 credit to prepaid asset and $60000 credit to retained earnings.\nAnswer:", " As a $180000 debit to prepaid insurance."], ["Question: Bailey Co. changed the accounting for insurance expense from the cash basis to the accrual basis in the current year. In January of the prior year Bailey recorded insurance expense of $240000 for the cash purchase of a four-year insurance policy. How should Bailey report the insurance transaction in the current year's financial statements?\nChoices:\nA. As a $180000 debit to prepaid insurance.\nB. As a $60000 debit to insurance expense.\nC. As a $60000 debit to insurance expense a $120000 debit to prepaid asset and $180000 credit to retained earnings.\nD. As a $180000 debit to insurance expense a $120000 credit to prepaid asset and $60000 credit to retained earnings.\nAnswer:", " As a $60000 debit to insurance expense."], ["Question: Bailey Co. changed the accounting for insurance expense from the cash basis to the accrual basis in the current year. In January of the prior year Bailey recorded insurance expense of $240000 for the cash purchase of a four-year insurance policy. How should Bailey report the insurance transaction in the current year's financial statements?\nChoices:\nA. As a $180000 debit to prepaid insurance.\nB. As a $60000 debit to insurance expense.\nC. As a $60000 debit to insurance expense a $120000 debit to prepaid asset and $180000 credit to retained earnings.\nD. As a $180000 debit to insurance expense a $120000 credit to prepaid asset and $60000 credit to retained earnings.\nAnswer:", " As a $60000 debit to insurance expense a $120000 debit to prepaid asset and $180000 credit to retained earnings."], ["Question: Bailey Co. changed the accounting for insurance expense from the cash basis to the accrual basis in the current year. In January of the prior year Bailey recorded insurance expense of $240000 for the cash purchase of a four-year insurance policy. How should Bailey report the insurance transaction in the current year's financial statements?\nChoices:\nA. As a $180000 debit to prepaid insurance.\nB. As a $60000 debit to insurance expense.\nC. As a $60000 debit to insurance expense a $120000 debit to prepaid asset and $180000 credit to retained earnings.\nD. As a $180000 debit to insurance expense a $120000 credit to prepaid asset and $60000 credit to retained earnings.\nAnswer:", " As a $180000 debit to insurance expense a $120000 credit to prepaid asset and $60000 credit to retained earnings."], ["Question: To which of the following rights is a holder of a public corporation's cumulative preferred stock always entitled?\nChoices:\nA. Conversion of the preferred stock into common stock.\nB. Voting rights.\nC. Dividend carryovers from years in which dividends were not paid.\nD. Guaranteed dividends.\nAnswer:", " Conversion of the preferred stock into common stock."], ["Question: To which of the following rights is a holder of a public corporation's cumulative preferred stock always entitled?\nChoices:\nA. Conversion of the preferred stock into common stock.\nB. Voting rights.\nC. Dividend carryovers from years in which dividends were not paid.\nD. Guaranteed dividends.\nAnswer:", " Voting rights."], ["Question: To which of the following rights is a holder of a public corporation's cumulative preferred stock always entitled?\nChoices:\nA. Conversion of the preferred stock into common stock.\nB. Voting rights.\nC. Dividend carryovers from years in which dividends were not paid.\nD. Guaranteed dividends.\nAnswer:", " Dividend carryovers from years in which dividends were not paid."], ["Question: To which of the following rights is a holder of a public corporation's cumulative preferred stock always entitled?\nChoices:\nA. Conversion of the preferred stock into common stock.\nB. Voting rights.\nC. Dividend carryovers from years in which dividends were not paid.\nD. Guaranteed dividends.\nAnswer:", " Guaranteed dividends."]]