Practice CPA-Financial Exam Online

Question 1

In April 30, 20X4, Deer Corp. approved a plan to dispose of a component of its business. For the period January 1 through April 30, 20X4, the component had revenues of $500,000 and expenses of $800,000. The assets of the component were sold on October 15, 20X4 at a loss. In its income statement for the year ended December 31, 20X4, how should Deer report the component's operations from January 1 to April 30, 20X4?

A :

$500,000 and $800,000 should be included with revenues and expenses, respectively, as part of continuing operations.

B :

$300,000 should be reported as part of the loss on disposal of a component and included as part of continuing operations.

C : $300,000 should be reported as an extraordinary loss.

D :

$300,000 should be reported as a loss from operations of a component and included in loss from discontinued operations.

Answer: D

Question 2

Which of the following facts concerning fixed assets should be included in the summary of significant accounting policies?

A : Option A

B : Option B

C : Option C

D : Option D

Answer: C

Question 3

Which of the following should be disclosed for each reportable operating segment of an enterprise?

A : Option A

B : Option B

C : Option C

D : Option D

Answer: A

Question 4

What is the purpose of information presented in notes to the financial statements?

A : To provide disclosures required by generally accepted accounting principles.

B : To correct improper presentation in the financial statements.

C : To provide recognition of amounts not included in the totals of the financial statements.

D : To present management's responses to auditor comments.

Answer: A

Question 5

In financial reporting of segment data, which of the following must be considered in determining if an industry segment is a reportable segment?

A : Option A

B : Option B

C : Option C

D : Option D

Answer: A

Name:	CPA Financial Accounting and Reporting
Exam Code:	CPA-Financial
Certification:	Certified Public Accountant(CPA)
Vendor:	AICPA
Total Questions:	165
Last Updated:	Nov 06, 2025

AICPA CPA-Financial Answers