CPA Accountant Review Questions

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| By Gregorynaomi

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Quizzes Created: 1462 | Total Attempts: 836,062

Questions: 10 | Attempts: 241 | Updated: Mar 21, 2023

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Certified Public Accountant is a license for an accountant to provide an outstanding public accounting. To acquire this license, the applicant must passed through some exams which are organized by approved organizations. It is said to be performed by English speaking countries and all states across the US and thus promoting good service offered by accountant to clients.

Questions and Answers

1.

Where was the Certified Public Accountant certification founded?
- A.
  
  Canada
- B.
  
  Australia
- C.
  
  United Kingdom
- D.
  
  United States
Correct Answer
D. United States

Explanation
The Certified Public Accountant (CPA) certification was founded in the United States. This certification is granted by the American Institute of Certified Public Accountants (AICPA), which is the national professional organization for CPAs in the United States. The AICPA was established in 1887 and has played a significant role in setting the standards and regulations for the accounting profession in the country.

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2.

Which of these positions does CPA can not be employed?
- A.
  
  Receptionist
- B.
  
  Financial Analyst
- C.
  
  Finance Manager
- D.
  
  Finance Controller
Correct Answer
A. Receptionist

Explanation
A Certified Public Accountant (CPA) is a professional designation for accountants in the United States. CPAs are typically employed in roles that require financial expertise and knowledge, such as Financial Analyst, Finance Manager, and Finance Controller. However, a CPA is unlikely to be employed as a Receptionist, as this position does not require the same level of financial expertise and qualifications. Therefore, the correct answer is Receptionist.

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3.

Which of these organizations set the Uniform CPA exams?
- A.
  
  IRS
- B.
  
  GAAP
- C.
  
  AICPA
- D.
  
  CPA
Correct Answer
C. AICPA

Explanation
The correct answer is AICPA. AICPA stands for the American Institute of Certified Public Accountants, which is the organization responsible for setting and administering the Uniform CPA (Certified Public Accountant) exams. These exams are a requirement for individuals who wish to become licensed CPAs in the United States. The AICPA ensures that the exams are standardized and reflect the necessary knowledge and skills required for the profession.

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4.

What is the full meaning of GAAP?
- A.
  
  Generally acquired accounting problem
- B.
  
  Generally accepted accounting problem
- C.
  
  Generally accepted accounting principle
- D.
  
  Generally acquired accounting principle
Correct Answer
C. Generally accepted accounting principle

Explanation
GAAP stands for Generally Accepted Accounting Principles. These are a set of standard guidelines and procedures that companies use to prepare and present their financial statements. GAAP ensures that financial information is consistent, reliable, and comparable across different organizations. It provides a framework for financial reporting, including rules for recording and reporting transactions, as well as guidelines for disclosure and presentation of financial statements. By following GAAP, companies can provide accurate and transparent financial information to investors, creditors, and other stakeholders.

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5.

Where was the CPA designation firstly established?
- A.
  
  Washington DC
- B.
  
  New York
- C.
  
  Maryland
- D.
  
  Ohio
Correct Answer
B. New York

Explanation
The CPA designation was firstly established in New York.

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6.

What year was the CPA firstly established?
- A.
  
  1895
- B.
  
  1896
- C.
  
  1897
- D.
  
  1898
Correct Answer
B. 1896

Explanation
The CPA was established in 1896.

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7.

Which of these areas of finance does CPA cannot perform?
- A.
  
  Estate planning
- B.
  
  Financial analysis
- C.
  
  Financial accounting
- D.
  
  Marketing
Correct Answer
D. Marketing

Explanation
CPAs (Certified Public Accountants) are professionals who specialize in accounting and financial matters. They are trained and qualified to perform tasks related to financial analysis, financial accounting, and estate planning. However, marketing is not a field that falls within the expertise of CPAs. Marketing involves activities such as advertising, promotion, and market research, which are outside the scope of a CPA's role. Therefore, CPAs cannot perform marketing tasks.

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8.

When did Illinois state plan to suit the CPA licenses?
- A.
  
  2015
- B.
  
  2014
- C.
  
  2013
- D.
  
  2012
Correct Answer
D. 2012

Explanation
In 2012, Illinois state planned to suit the CPA licenses.

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9.

Which of these countries doesn't practice CPA license system?
- A.
  
  United Kingdom
- B.
  
  United States
- C.
  
  China
- D.
  
  Australia
Correct Answer
C. China

Explanation
China does not practice the CPA license system. The CPA license system is a professional accounting qualification that is recognized internationally. While countries like the United Kingdom, United States, and Australia have their own versions of the CPA license system, China does not have a similar system in place. This means that individuals in China may not be required to obtain a CPA license to practice accounting professionally.

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10.

What is the full meaning of AICPA?
- A.
  
  Australian Institute of Certified Public Accountant
- B.
  
  Australian Institution of Certified Public Accountant
- C.
  
  American Institution of Certified Public Accountant
- D.
  
  American Institute of Certified Public Accountant
Correct Answer
D. American Institute of Certified Public Accountant

Explanation
The correct answer is "American Institute of Certified Public Accountant." AICPA is a professional organization for certified public accountants in the United States. They provide guidance, support, and resources to accountants and promote ethical practices in the accounting profession.

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