Accounting Exit Exam Question And Solutions Wit New ((better)) [ FRESH ]

These questions focus on current accounting issues (IFRS/GAAP alignment, leases, revenue recognition, consolidation) and analytical application, not just memorization.

Section C: Financial Statement Analysis & Interpretation

Section A: Multiple Choice (Select the best answer)

Question 5: Corporate Tax Liability (5 Points)

Company has taxable income of $500,000. Corporate tax rates: accounting exit exam question and solutions wit new

• 15% on first $50,000
• 25% on next $25,000
• 34% on next $25,000
• 39% on excess over $100,000

Required: Compute tax liability.

Question 4: Ethical Dilemma – Pressure to Adjust Reserves

Scenario:
You are the senior accountant. The CFO asks you to reduce the allowance for doubtful accounts by $500,000 to meet earnings target. Your calculation (based on aging) supports the current allowance. The CFO says: “We’ll reverse it next quarter – just temporary.” 15% on first $50,000 25% on next $25,000

Question:
According to the IESBA Code (or AICPA), what should you do? 200 – 2

Solution 4:

• Price Variance = AQ × (AP – SP) = 2,200 × ($4.80 – $5.00) = 2,200 × (–$0.20) = $440 Favorable
• Quantity Variance = SP × (AQ – SQ) = $5 × (2,200 – 2,000) = $5 × 200 = $1,000 Unfavorable
  (SQ = 1,000 units × 2 lbs = 2,000 lbs)