Amazon
Avaya
Cisco
CompTIA
CrowdStrike
EC-Council
EXIN
Fortinet
Google
ISC
ISC2
ITIL
Juniper
Microsoft
NVIDIA
Okta
Palo Alto Networks
Salesforce
SAP
ServiceNow
All Vendors
  1. Home
  2. AICPA
  3. FAR

AICPA FAR (page: 1)

AICPA CPA Financial Accounting and Reporting

Updated 17-Apr-2026

Page 1 of 34 FAR PDF — 163 Questions

According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on:

  1. Generally accepted accounting principles.
  2. Reporting on management's stewardship.
  3. The need for conservatism.
  4. The needs of the users of the information.

Answer(s): D

Explanation:

Choice "d" is correct. The FASB conceptual framework states that the objectives of financial reporting stem from the informational needs of the external users of the information. SFAC 1 para. 28 Choice "a" is incorrect. Generally accepted accounting principles (GAAP) are derived from and based on the objectives of financial reporting, not the other way around. Choice "b" is incorrect. Information concerning management's stewardship is only one aspect of the information financial statements are intended to provide. SFAC 1 para. 50 Choice "c" is incorrect. Conservatism is an underlying concept for financial accounting but is not the basis for the objectives. SFAC 2 para. 91-97



According to the FASB conceptual framework, the usefulness of providing information in financial statements is subject to the constraint of:

  1. Consistency.
  2. Cost-benefit.
  3. Reliability.
  4. Representational faithfulness.

Answer(s): B

Explanation:

Choice "b" is correct. The pervasive constraint on providing information in financial statements is that the cost should be outweighed by the benefit to be derived from providing the information.
SFAC 1 para. 23, SFAC 2 para. 133
Choice "a" is incorrect. Consistency is an underlying concept for financial statements (and a secondary quality of accounting information), but it is not a constraint on providing information. SFAC 2 para. 120 Choice "c" is incorrect. Reliability is a primary quality of accounting information and an underlying concept for financial statements, but it is not a constraint on providing information. SFAC 2 para. 58 Choice "d" is incorrect. Representational faithfulness is an underlying concept for financial statements (as an element of reliability), but it is not a constraint on providing information.
SFAC 2 para.



According to the FASB conceptual framework, which of the following attributes would not be used to measure inventory?

  1. Historical cost.
  2. Replacement cost.
  3. Net realizable value.
  4. Present value of future cash flows.

Answer(s): D

Explanation:

Choice "d" is correct. The present value of future cash flows is used to measure long-term receivables or payables, not inventory, because inventory is a short-term asset, which has more immediate cash flows. SFAC 5 para. 67
Choice "a" is incorrect. Historical cost can be used to measure inventory because it is a relevant and reliable measurement attribute of current assets such as inventory. Choice "b" is incorrect. Replacement (or current) cost can be used to measure inventory because it is a relevant and reliable measurement attribute of current assets such as inventory. Choice "c" is incorrect. Net realizable value can be used to measure inventory because it is a relevant and reliable measurement attribute of current assets such as inventory.



According to the FASB conceptual framework, which of the following situations violates the concept of reliability?

  1. Data on segments having the same expected risks and growth rates are reported to analysts estimating future profits.
  2. Financial statements are issued nine months late.
  3. Management reports to stockholders regularly refer to new projects undertaken, but the financial statements never report project results.
  4. Financial statements include property with a carrying amount increased to management's estimate of market value.

Answer(s): D

Explanation:

Choice "d" is correct. Management's estimate of market value lacks verifiability, which is a component of reliability. SFAC 2 para. 89
Choice "a" is incorrect. Communicating data on segments to analysts does not violate the concept of reliability.
Choice "b" is incorrect. Issuing financial statements nine months late violates timeliness, which is a component of relevance, not reliability. SFAC 2 para. 56 Choice "c" is incorrect. Neglecting to report results of new projects violates full disclosure, not
reliability.



In the hierarchy of generally accepted accounting principles, APB Opinions have the same authority as AICPA:

  1. Statements of Position.
  2. Industry Audit and Accounting Guides.
  3. Issues Papers.
  4. Accounting Research Bulletins.

Answer(s): D

Explanation:

Choice "d" is correct. AICPA Accounting Research Bulletins, FASB Standards, FASB Interpretations, FASB Staff Positions, FASB Statement 133 Implementation Issues, and APB Opinions and Interpretations are the most authoritative sources of generally accepted accounting principles. Choice "a" is incorrect. AICPA Statements of Position, AICPA Accounting and Auditing Guides, and FASB Technical Bulletins are secondary sources of generally accepted accounting principles. Choice "b" is incorrect. AICPA Statements of Position, AICPA Accounting and Auditing Guides, and FASB Technical Bulletins are secondary sources of generally accepted accounting principles. Choice "c" is incorrect. AICPA Issues Papers and Practice Bulletins, FASB Concepts Statements, and other authoritative pronouncements are tertiary sources for generally accepted accounting principles.



Page 1 of 34

Share your comments for AICPA FAR exam with other users:

dorcas 9/22/2023 8:08:00 AM

i need this now
Anonymous


treyf 11/9/2023 5:13:00 AM

i took the aws saa-c03 test and scored 935/1000. it has all the exam dumps and important info.
UNITED STATES


anonymous 1/11/2024 4:50:00 AM

good questions
Anonymous


Anjum 9/23/2023 6:22:00 PM

well explained
Anonymous


Thakor 6/7/2023 11:52:00 PM

i got the full version and it helped me pass the exam. pdf version is very good.
INDIA


sartaj 7/18/2023 11:36:00 AM

provide the download link, please
INDIA


loso 7/25/2023 5:18:00 AM

please upload thank.
THAILAND


Paul 6/23/2023 7:12:00 AM

please can you share 1z0-1055-22 dump pls
UNITED STATES


exampei 10/7/2023 8:14:00 AM

i will wait impatiently. thank youu
Anonymous


Prince 10/31/2023 9:09:00 PM

is it possible to clear the exam if we focus on only these 156 questions instead of 623 questions? kindly help!
Anonymous


Ali Azam 12/7/2023 1:51:00 AM

really helped with preparation of my scrum exam
Anonymous


Jerman 9/29/2023 8:46:00 AM

very informative and through explanations
Anonymous


Jimmy 11/4/2023 12:11:00 PM

prep for exam
INDONESIA


Abhi 9/19/2023 1:22:00 PM

thanks for helping us
Anonymous


mrtom33 11/20/2023 4:51:00 AM

i prepared for the eccouncil 350-401 exam. i scored 92% on the test.
Anonymous


JUAN 6/28/2023 2:12:00 AM

aba questions to practice
UNITED STATES


LK 1/2/2024 11:56:00 AM

great content
Anonymous


Srijeeta 10/8/2023 6:24:00 AM

how do i get the remaining questions?
INDIA


Jovanne 7/26/2022 11:42:00 PM

well formatted pdf and the test engine software is free. well worth the money i sept.
ITALY


CHINIMILLI SATISH 8/29/2023 6:22:00 AM

looking for 1z0-116
Anonymous


Pedro Afonso 1/15/2024 8:01:00 AM

in question 22, shouldnt be in the data (option a) layer?
Anonymous


Pushkar 11/7/2022 12:12:00 AM

the questions are incredibly close to real exam. you people are amazing.
INDIA


Ankit S 11/13/2023 3:58:00 AM

q15. answer is b. simple
UNITED STATES


S. R 12/8/2023 9:41:00 AM

great practice
FRANCE


Mungara 3/14/2023 12:10:00 AM

thanks to this exam dumps, i felt confident and passed my exam with ease.
UNITED STATES


Anonymous 7/25/2023 2:55:00 AM

need 1z0-1105-22 exam
Anonymous


Nigora 5/31/2022 10:05:00 PM

this is a beautiful tool. passed after a week of studying.
UNITED STATES


Av dey 8/16/2023 2:35:00 PM

can you please upload the dumps for 1z0-1096-23 for oracle
INDIA


Mayur Shermale 11/23/2023 12:22:00 AM

its intresting, i would like to learn more abouth this
JAPAN


JM 12/19/2023 2:23:00 PM

q252: dns poisoning is the correct answer, not locator redirection. beaconing is detected from a host. this indicates that the system has been infected with malware, which could be the source of local dns poisoning. location redirection works by either embedding the redirection in the original websites code or having a user click on a url that has an embedded redirect. since users at a different office are not getting redirected, it isnt an embedded redirection on the original website and since the user is manually typing in the url and not clicking a link, it isnt a modified link.
UNITED STATES


Freddie 12/12/2023 12:37:00 PM

helpful dump questions
SOUTH AFRICA


Da Costa 8/25/2023 7:30:00 AM

question 423 eigrp uses metric
Anonymous


Bsmaind 8/20/2023 9:22:00 AM

hello nice dumps
Anonymous


beau 1/12/2024 4:53:00 PM

good resource for learning
UNITED STATES


AI Tutor 👋 I’m here to help!