CPA-TEST Exam Questions & Answers

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CPA-TEST Exam Questions & Answers

Vendor: AICPA

Certifications: AICPA Certifications

Exam Code: CPA-TEST

Exam Name: Certified Public Accountant Test: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, Regulation

Updated: Jul 29, 2022

Q&As: 1241

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CPA-TEST Online Practice Questions and Answers

Questions 1

Which of the following strategies would a CPA most likely consider in auditing an entity that processes most of its financial data only in electronic form, such as a paperless system?

A. Continuous monitoring and analysis of transaction processing with an embedded audit module.

B. Increased reliance on internal control activities that emphasize the segregation of duties.

C. Verification of encrypted digital certificates used to monitor the authorization of transactions.

D. Extensive testing of firewall boundaries that restrict the recording of outside network traffic.

Show Answer
Questions 2

A limited liability company taxed under subchapter K of the Internal Revenue Code (the partnership subchapter):

A. Must pay federal income tax.

B. Is generally not considered a legal entity separate and apart from its owners.

C. Must have written articles of organization.

D. Must provide for apportionment of liability for the company's debts.

Show Answer
Questions 3

In 1992, Anchor, Chain, and Hook created ABC Associates, a general partnership. The partners orally agreed that they would work full time for the partnership and would distribute profits based on their capital contributions. Anchor contributed $5,000; Chain $10,000; and Hook $15,000. For the year ended December 31, 1993, ABC Associates had profits of $60,000 that were distributed to the partners. During 1994, ABC Associates was operating at a loss. In September 1994, the partnership dissolved. In October 1994, Hook contracted in writing with XYZ Co. to purchase a car for the partnership. Hook had previously purchased cars from XYZ Co. for use by ABC Associates partners. ABC Associates did not honor the contract with XYZ Co. and XYZ Co. sued the partnership and the individual partners.

A. Anchor's capital account would be reduced by 1/3 of any 1994 losses.

B. Hook's capital account would be reduced by 1/2 of any 1994 losses.

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