Sample CPA Exam Questions
1. Which of the following is used in calculating the income recognized in the fourth and final year of a contract accounted for by the percentage of completion method?
|
|
Actual Total |
Income Previously |
|
|
Cost |
Recognized |
|
(a) |
Yes |
Yes |
|
(b) |
Yes |
No |
|
(c) |
No |
Yes |
|
(d) |
No |
No |
2. When should a lessor recognize in income a nonrefundable lease bonus paid by a lessee upon signing an operating lease?
(a) When received
(b) At the inception of the lease
(c) At the expiration of the lease
(d) Over the life of the lease