Wiley CPA Examination Review 2012-2013 Volume 2 : Problems and Solutions

1480 Pages·2012·17.171 MB·English

by  Patrick R. Delaney, O. Ray Whittington

I n c l u d e s M o s t R e c e n t A I C PA R e l e a s e d Q u e s t i o n s
3 Over
3,700
Questions and
1 CPA
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Simulations!
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E X A M
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REVIEW
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39th Edition
Volume 2: Problems and Solutions
O. Ray Whittington,
CPA, PhD
Patrick R. Delaney,
CPA, PhD

WILEY
CPA
EXAM
REVIEW

WILEY

3
1
0
2
-
2
1
0
REVIEW
2
39th Edition

Volume 2
Problems and Solutions

O. Ray Whittington,
CPA, PhD
Patrick R. Delaney,
CPA, PhD

JOHN WILEY & SONS, INC.
The following items, Copyright © by the American Institute of Certified Public Accountants, Inc., are reprinted with per-
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2. Information for Uniform CPA Examination Candidates, Board of Examiners, 2000.
3. Material from the Certified Internal Auditor Examination, Copyright © 1994 through 1997 by the Institute of In-
ternal Auditors, Inc., are reprinted and/or adapted with permission.
4. AICPA CPA Exam Released Questions, 1997 through 2012.
Material from the Certified Management Accountant Examinations, Copyright © 1993 through 1997 by the Institute of
Certified Management Accountants, are reprinted and/or adapted with permission.
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ISBN: 978-1-118-25450-9 (Volume 2 paperback); 978-1-118-28336-3 (ebk); 978-1-118-28459-9 (ebk);
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10 9 8 7 6 5 4 3 2 1
CONTENTS

Preface ix
About the Authors xi
About the Contributors xi

How To Use This Book 1

AUDITING AND ATTESTATION
Module 1: Professional Responsibilities 9
Module 2: Engagement Planning, Obtaining an Understanding of the
Client and Assessing Risks 26
Module 3: Understanding Internal Control and Assessing Control
Risk 71
Module 4: Responding to Risk Assessment: Evidence Accumulation
and Evaluation 115
Module 5: Reporting 167
Module 6: Accounting and Review Services 206
Module 7: Audit Sampling 219
Module 8: Auditing with Technology 235

FINANCIAL ACCOUNTING AND REPORTING
Module 9: Basic Theory and Financial Reporting 249
Module 10: Inventory 346
Module 11: Fixed Assets 376
Module 12: Monetary Current Assets and Current Liabilities 407
Module 13: Present Value 444
Module 14: Deferred Taxes 516
Module 15: Stockholders’ Equity 536
Module 16: Investments 570
Module 17: Statement of Cash Flows 598
Module 18: Business Combinations and Consolidations 618
Module 19: Derivative Instruments and Hedging Activities 645
Module 20: Miscellaneous 664
Module 21: Governmental (State and Local) Accounting 703
Module 22: Not-for-Profit Accounting 729
REGULATION
PROFESSIONAL RESPONSIBILITIES AND BUSINESS LAW 749
Module 23: Professional and Legal Responsibilities 751
Module 24: Federal Securities Acts 770
Module 25: Business Structure 784
Module 26: Contracts 803
Module 27: Sales 821
Module 28: Commercial Paper 837
Module 29: Secured Transactions 855
Module 30: Bankruptcy 864
Module 31: Debtor-Creditor Relationships 875
Module 32: Agency 883
Module 33: Regulation of Business Employment, Environment, and
Antitrust 891
Module 34: Property 902
FEDERAL TAXATION 915
Module 35: Individual Taxation 917
Module 36: Transactions in Property 989
Module 37: Partnerships Taxation 1010
Module 38: Corporate Taxation 1038
Module 39: Other Taxation Topics 1095

BUSINESS ENVIRONMENT AND CONCEPTS
Module 40: Corporate Governance, Internal Control, and Enterprise
Risk Management 1121
Module 41: Information Technology 1133
Module 42: Economics, Strategy, and Globalization 1162
Module 43: Financial Risk Management and Capital Budgeting 1184
Module 44: Financial Management 1202
Module 45: Performance Measures 1228
Module 46: Cost Measurement 1241
Module 47: Planning, Control, and Analysis 1256
APPENDICES
Appendix A: Sample Examinations 1281
Auditing and Attestation 1281
Financial Accounting and Reporting 1307
Regulation 1338
Business Environment and Concepts 1362
Appendix B: Sample Testlet Released by the AICPA 1377
Auditing and Attestation 1377
Financial Accounting and Reporting 1384
Regulation 1392
Business Environment and Concepts 1399
Appendix C: 2012Released AICPA Questions 1401
Auditing and Attestation 1401
Financial Accounting and Reporting 1420
Regulation 1440
Business Environment and Concepts 1456