US GAAP Practice Exam Questions

US GAAP Practice Exam Questions

US GAAP is the Generally Accepted Accounting Principles in the US. These are nothing but the accounting rules that are used in the United States for organising, presenting, and reporting financial statements for an assortment of entities including privately held and publicly traded companies, and governments. Hence, the US GAAP exam validates your knowledge of these accounting principles.

Target Audience

• Students and Graduates

• Working Professionals

• Other interested candidates 

Benefits

This exam has the following benefits-

• It is good for your career progression.

• It improves the value of your CV.

• It validates your knowledge of the subject

• It prepares you for better roles.

Topics Covered

The topics covered in this examare as follows-

Financial Standards

• Introduction to Financial Standards

• Need for financial standards 

• Financial ReportingObjectives

• Characteristics and the Limitations of a Financial Report

• IFRS and GAAP

• Understanding US-GAAP

ASC 105 - GAAP History and Hierarchy

• Objective of ASC 105

• History of US GAAP 

• GAAP Hierarchy

• Sources of US GAAP 

• US GAAP Assumptions

• Commonly Accepted Accounting Principles

• The Conceptual Framework

• Glossary

ASC 205 - Presentation of Financial Statements

• Basic Terminologies

• Materiality

• Understanding the Liquidation Basis of Accounting

• Qualifications and Reports of Accountants

• Usual Instructions as to Financial Statements

• General ApplicationRules

• Understanding the Interim Financial Statements

• Discontinued Operations

• Strategic Shift

ASC 210 – Balance Sheet

• Current Assets and Non-Current Assets

• Understanding Current Liabilities and Non-current Liabilities

• Offsetting

• Stockholders’ Equity

ASC 225 - Income Statement

• Income Statement 

• Ways of Constructing the Income Statement

• Knowledge of Operating Revenues and Expenses

• Non-operating Revenues and Expenses

• Understanding GAAP and the Income Statement

• Noncash Items

• Comprehensive IncomeStatements

• Infrequent Items

• Scheduling to File

• Income from Continuing Operations

ASC 230 - Statement of Cash flow

• Brief of Cash Flow 

• Classifying Cash Flow 

• Noncash Investing and Financing Activities

• Reporting

ASC 323 - Investments - Equity Method and Joint Ventures

• Understanding the Revenue and Asset Changes under the Equity Method of Accounting

• Equity Method and GAAP

• Knowledge of Initial Recognition and Measurement

• Recognizing Investee Activity

• Understanding Investor-level Adjustments

• Presentation and Disclosure

• ASC 323 Equity Method and JV Brief

ASC 326 - Financial Instruments - Credit Losses

• Introduction

• Assets Measured at Amortized Cost

• Measuring Expected Losses

• Subsequently Measuring Expected Credit Losses

• Available-for-Sale Debt Securities

ASC 330 - Inventory

• Basics of Inventory 

• Inventory Valuation

• Understanding Absorption Costing

• Retail Inventory Method

• The LIFO System

• Lower of cost or market (LCM)

• Inventory under US-GAAP 

ASC 360 - Property, Plant and Equipment

• Basics of PP&E 

• PPE under GAAP

• Understanding Cost Capitalization

• Knowing Asset Acquisitions

• Depreciation and Amortization

• Understanding of Asset Disposal

• Learning Disclosures

• Brief of Property, Plant and Equipment 

ASC 405 - Liabilities

• Extinguishment of Liabilities

• Prepaid Stored-Value Products

• Derecognition

ASC 605 - Revenue Recognition

• Definitions

• Basics of Revenue Recognition 

• Identification of the Contract

• Performance Obligations

• Price of Transaction 

• Recognizing Revenue

• Completion MethodPercentage

• Completed Contract Method 

• Installment Methodology

• Cost Recovery Methodology

• The Revenue Recognition Model

• Long Term Construction Contracts

• Services Revenue Recognition

• Brief of Revenue Recognition 

ASC 810 - Consolidation

• Non-Controlling Interest

• Understanding Consolidation Models

• The Variable Interest Entity 

• Partnerships

• The Voting Interest Model

• Arrangements of Research and Development 

• Joint Venture

ASC 958 - Not-for-Profit Entities

• Revenues and Expenses

• Understanding the Gains and Losses

• Reclassifications