AICPA FAR Exam Dumps

Name: FAR
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SKU: FAR
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Financial Accounting and Reporting

Total Questions : 163

Update Date : July 16, 2026

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Question # 1

An inventory loss from a market price decline occurred in the first quarter, and the decline was not expected to reverse during the fiscal year. However, in the third quarter the inventory's market price recovery exceeded the market decline that occurred in the first quarter. For interim financial reporting, the dollar amount of net inventory should:

A. Decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of the decrease in the first quarter.
B. Decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of the market price recovery.
C. Decrease in the first quarter by the amount of the market price decline and not be affected in the third quarter.
D. Not be affected in either the first quarter or the third quarter.

Question # 2

Kell Corp.'s $95,000 net income for the quarter ended September 30, 1990, included the following aftertaxitems:. A $60,000 extraordinary gain, realized on April 30, 1990, was allocated equally to the second, third, andfourth quarters of 1990.. A $16,000 cumulative-effect loss resulting from a change in inventory valuation method was recognizedon August 2, 1990.In addition, Kell paid $48,000 on February 1, 1990, for 1990 calendar-year property taxes. Of this amount,$12,000 was allocated to the third quarter of 1990.For the quarter ended September 30, 1990, Kell should report net income of:

A. $91,000
B. $103,000
C. $111,000
D. $115,000

Question # 3

An inventory loss from a permanent market decline of $360,000 occurred in May 1989. Cox Co.appropriately recorded this loss in May 1989 after its March 31, 1989 quarterly report was issued. Whatamount of inventory loss should be reported in Cox's quarterly income statement for the three monthsended June 30, 1989?

A. $0
B. $90,000
C. $180,000
o. $360,000

Question # 4

During the second quarter of 1988, Buzz Company sold a piece of equipment at a $12,000 gain. What portion of the gain should Buzz report in its income statement for the second quarter of 1988?

A. $12,000
B. $0,000
C. $4,000
o. $0

Question # 5

Reclassification adjustments must be shown in the financial statement that discloses comprehensive income:

A. To show what portion of comprehensive income is from the realization of current assets.
B. To show the tax effect of items of comprehensive income.
C. To avoid double counting in comprehensive income items, which are currently displayed in net income.
D. To avoid including transactions with shareholders in items of comprehensive income.

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