GAAP: Inside and Out. Course #5270J/QAS5270J Exam Packet

Transcription

1 GAAP: Inside and Out Course #5270J/QAS5270J Exam Packet

2 GAAP: INSIDE AND OUT (COURSE #5270J/QAS5270J) COURSE DESCRIPTION This course covers a variety of issues related to GAAP including the unusual reporting and disclosure issues that develop in practice, such as how to disclose life insurance, leases, catastrophes, and OCBOA financial statements. Uses materials entitled GAAP: Inside and Out, CPA. Prerequisites: General understanding of GAAP and OCBOA. Course level: Overview. Course #5270J/QAS5270J 16 CPE hours. LEARNING ASSIGNMENTS and OBJECTIVES As a result of studying each assignment, you should be able to meet the objectives listed below each individual assignment. ASSIGNMENT SUBJECT 1 GAAP Q & A Balance Sheet Review the materials from Section I: Part 1: Pages 3 through 118 Study the review questions and suggested solutions throughout Section I: Part 1 Answer the exam questions 1 to 30 Objectives: To discuss the unusual practice issues that affect preparers of balance sheets To explain how to properly account for non-monetary exchanges To describe what is meant by lacking commercial substance To discuss how to properly account for cash and investments on the balance sheet To define the meaning of other-than-temporary To recognize the GAAP requirements regarding allowance accounts To discuss the requirements of ASC 805 and 350 To identify the difference between ASC 840 and 440 Exam Page -1

3 ASSIGNMENT SUBJECT 2 GAAP Q & A Revenue and Expenses Review the materials from Section I: Part 2: Pages 124 through 288 Study the review questions and suggested solutions throughout Section I: Part 2 Answer the exam questions 31 to 70 Objectives: To recognize several unusual practice issues that affect revenue and expense items To explain how to properly account for shipping and handling costs To be aware of the factors and indicators that should be considered in evaluating gross versus net treatment of sales transactions To describe what are start-up costs and how they should be accounted for To explain what concentrations of credit risk must be disclosed To identify what disclosures are required by limited liability companies To discuss the proper accounting treatment for acts of God and terrorist acts To describe the proper accounting treatment for web site development costs ASSIGNMENT SUBJECT 3 OCBOA: Cash and Income Tax Basis Financial Statements Review the materials from Section II: Pages 295 through 341 Study the review questions and suggested solutions throughout Section II Answer the exam questions 71 to 80 Objectives: To explain the requirements for income tax basis financial statements To identify how GAAP and OCBOA financial statements differ To describe how to convert from GAAP statements to an OCBOA statement ASSIGNMENT 4 Complete the Answer Sheet and Course Evaluation and mail to PES for credit NOTICE This course and test have been adapted from materials and information contained in the materials entitled GAAP: Inside and Out and any supplemental material provided. This course is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice and assumes no liability whatsoever in connection with its use. Since laws are constantly changing, and are subject to differing interpretations, we urge you to do additional research and consult appropriate experts before relying on the information contained in this course to render professional advice. Professional Education Services, LP 2013 Program publication date 4/19/13 Exam Page -2

4 GAAP: INSIDE AND OUT (COURSE #5270J/QAS5270J) EXAM OUTLINE COURSE EXPIRATION DATE: Per AICPA and NASBA standards, this course must be completed within one year from the date of purchase. TEST FORMAT: The following final exam, consisting of 80 multiple choice questions, is based specifically on the material included in this course. The answer sheet must be completed and returned to PES for CPE certification. You will find the answer sheet at the back of this exam packet so that you may easily remove it and use it while taking your test. LICENSE RENEWAL INFORMATION: The GAAP: Inside and Out course (#5270J/QAS5270J) qualifies for 16 CPE hours. PROCESSING: Your exam will be graded promptly. You must score 70% or better to pass. When you pass, your certificate of completion will be mailed. If you do not pass, we will give you a courtesy call to inform you of this and then another answer sheet will be sent to you free of charge. GRADING OPTIONS: Please choose only one of the following. There is no additional charge for any of these grading options. Make sure to fill out your answer sheet completely prior to submitting it. ONLINE GRADING Visit our website at Login to your account (if you are a first-time user you must set up a new user account). Go to the MY CPE tab and click the My CPE Exams in Progress folder. If your exam is not already located in this folder, click Add Exam Previously Purchased and follow the instructions. MAIL Your exam will be graded and your certificate of completion mailed to you the same day we receive it. Your certificate will be dated according to the postmark date; therefore, you do not need to overnight your exam. Please mail your answer sheet to: Professional Education Services, LP 4208 Douglas Blvd., Ste 50 Granite Bay, CA FAX Your exam will be graded and you will be contacted either via phone or fax with your results within 4 business hours of receipt. A copy of your graded exam and certificate of completion will be mailed to you the same day we receive it. Your certificate will be dated according to the fax date. If you choose to fax your exam, please do not mail it. Your fax will serve as the original. Please refer to the attached answer sheet for further instructions on fax grading. Fax number (916) Thank you for using Professional Education Services. We appreciate your business!! Exam Page -3

5 GAAP: INSIDE AND OUT (COURSE #5270J/QAS5270J) FINAL EXAM The following questions are multiple choice. Please indicate your choice on the enclosed Answer Sheet. 1. Which of the following is true with respect to notes to financial statements: a) notes should relate to the number of periods for which a balance sheet is presented only b) notes should relate to all periods presented c) notes should relate to the current period only d) notes should relate to the number of years for which an income statement is presented 2. Which of the following is true with respect to idle property and equipment: Depreciation should continue only if the equipment: a) is permanently idle b) is temporarily idle c) is placed in service and then was permanently idle d) is idle for less than the remaining useful life 3. ASC 845 (formerly FASB No. 153) provides that the assessment of commercial substance may be made either quantitatively or qualitatively by comparing the configuration of the future cash flows of the assets exchanged. The three elements of configuration of future cash flows include all of the following except: a) risk b) discount rate c) timing d) amount 4. The carrying value (book value) approach to a non-monetary exchange is based on the formula which is: a) book value of the asset given + cash given = cost of asset received b) book value of the asset given + cash received = cost of asset received c) fair value of the asset given + cash given = cost of asset received d) fair value of the asset received + cash received = cost of asset received 5. Under the non-monetary exchange rules, the indicated loss rule states that: a) the new asset should never be recorded at less than the carrying value of the old asset b) the old asset should never be removed at a loss c) the new asset should never be recorded at more than its carrying value of the old asset d) the new asset should never be recorded at more than its fair value 6. Which of the following is the formula to measure an impairment of real estate: a) Carrying amount of the real estate Less: fair value of the real estate Equals: Impairment loss b) Fair value of the real estate Less: Carrying value of the real estate Equals: Impairment loss c) Net present value of the real estate Less: Carrying value of the real estate Equals: Impairment loss d) Fair value of the real estate Less: Fair value of all non-real estate assets Equals: Impairment loss 7. With respect to an impairment of real estate, any loss should be allocated to the components of the long-lived assets under which of the following methods: a) based on each asset s relative estimated fair value b) based on each asset s relative carrying amount c) by allocating to land and building only without an allocation to fixtures and personal property d) using a systematic and rational method Exam Page -4

6 8. ASC 320 (formerly FASB No. 115) provides that the unrealized gain on securities available for sale should be presented: a) on the income statement, net of applicable federal and state income taxes b) in stockholders equity, net of applicable federal and state income taxes c) on the balance sheet as a contra-asset, net of applicable federal and state income taxes d) on the income statement, as an extraordinary item, net of tax effect 9. Debt securities held to maturity should be recorded on the balance sheet at: a) cost b) fair value c) lower of cost or market value d) current value 10. Which of the following is not a step in determining an other-than-temporary impairment of a security: a) determine whether the investment is impaired b) evaluate whether the impairment is otherthan-temporary c) recognize an impairment loss d) identify the valuation methods used 11. The equity method should be used for an investment in common stock if the investor has the ability to exercise over the operating and financial policies of an investee. a) power b) control c) significant influence d) majority rule 13. In accordance with ASC , a general partner that a limited partnership should consolidate the partnership into its financial statements if certain criteria are met. a) controls b) owns c) advises d) influences 14. In ASC , the presumption that general partners control a partnership is overcome (the general partners do not control the limited partnership) if the limited partners have which of the following rights: a) substantive kick-out rights b) substantive protective rights c) withdrawal rights d) conversion rights 15. Under ASU , in connection with trade receivables, all of the following should be disclosed on the balance sheet or in the notes, except: a) allowance for doubtful accounts or credit losses b) unearned income c) unamortized premiums and discounts d) portion of trade receivables that is less than 60 days old 16. Which of the following is a disclosure that is required with respect to trade receivables: a) an aging of trade receivables b) the current portion of trade receivables c) the policy for charging off uncollectible trade receivables d) the fair value of trade receivables 12. An investment in an entity that has risk and reward characteristics that are substantially similar to that entity s common stock is defined as: a) defacto common stock b) in-substance common stock c) redeemable common stock d) quasi common stock Exam Page -5

7 17. A company uses the installment method for tax purposes with respect to a note receivable. Collectibility of the note cannot be reasonably estimated or assured. In this case, which of the following is true: a) the company may only use the installment sales method b) the company may use either the installment sales or cost recovery method c) the company must use the accrual method only and may not use the installment sales method or the cost recovery method d) the company may only use the cost recovery method 18. Inventoriable costs include all of the following except: a) purchasing costs b) handling and receiving costs c) manufacturing overhead costs d) G&A costs 19. The LIFO reserve or replacement cost and its basis for determination: a) should be disclosed b) should not be disclosed c) should only be disclosed if the reserve exceeds $1 million d) should not be disclosed unless there is a liquidation of LIFO layers 20. In ASC 845 (formerly EITF Issue No ), inventory purchase and sale transactions with the same counterparty that are entered into in contemplation of one another should be: a) treated as two separate and distinct transactions b) combined and treated as a single exchange c) treated as a hybrid consisting of one transaction at fair value and the other at carrying value d) combined or treated as two transactions based on the ratio of boot to the total transaction cost 21. Under split-dollar insurance policies, which of the following should be recorded on the balance sheet: a) the lesser of the cash value or accumulated premium payments b) the greater of the cash value or accumulated premium payments c) the cash value d) the fair value less any policy loans outstanding 22. ASC 360 (formerly FASB No. 144) states that an intangible asset with a finite useful life should: a) be amortized over its useful life b) not be amortized c) be combined with other intangibles and not amortized d) be amortized over a period not to exceed five years 23. ASC (formerly FASB No. 43), requires a company to record a liability for vacation, holiday, or sick pay if four criteria are met that include all of the following except: a) the compensation has been earned b) the compensation vests or accumulates c) the compensation has been paid d) the amount can be estimated 24. Which of the following is the proper GAAP treatment for endorsement split dollar arrangements: a) an employer should recognize a liability for future benefits b) an employer should disclose the arrangement only without recording a liability c) an employer should record an asset and corresponding credit to equity d) there is no authority for dealing with such arrangements 25. The general rule is that environmental contamination treatment costs should be: a) charged to expense b) capitalized c) partially capitalized and partially expensed d) recorded as an intangible asset and amortized Exam Page -6

8 26. In accordance with ASC 835 (formerly APB No. 21), deferred interest on notes payable should be amortized using the: a) straight-line method b) rule of 78 method c) effective interest method d) incremental borrowing rate 27. The funded status of a defined benefit plan is defined as which of the following: a) fair value of plan assets less benefit obligation b) carrying value of the plan assets less benefit obligation c) gross carrying value of the plan assets d) benefit obligation less projected benefit obligation 28. Examples of costs associated with an exit activity include all of the following except: a) termination benefits b) contract termination costs c) costs to consolidate facilities d) legal fees to acquire a new facility 29. If a company has cumulative preferred stock, the dividends: a) do not become a liability until declared b) become a liability before they are declared c) are never recorded as a liability d) are recorded as a reduction to preferred stock 30. Which of the following is true as it relates to S corporation distributions: a) GAAP treats S distributions as compensation expense b) GAAP treats S distributions as a dividend c) GAAP does not address S distributions d) GAAP treats S distributions as receivables from shareholders 31. Shipping costs are defined as costs incurred to physically move a product from: a) a seller s place of business to a buyer s designated location b) a seller s place of business to its manufacturing location c) a buyer s place of business to its manufacturing location d) a manufacturer s location to its internal warehouse 32. ASC 605 concludes that all amounts billed to a customer in a sales transaction related to shipping and handling, if any, represent revenues earned for the goods provided and should be classified as: a) a credit to operating expenses b) a credit to cost of goods sold c) revenue d) a deferred credit on the balance sheet 33. ASC 605 states that the classification of shipping and handling costs: a) should be made to cost of goods sold b) is an accounting policy decision that should be disclosed in the notes to financial statements c) should be made to selling and delivery expenses d) should be made to general and administrative expenses 34. Which of the following would support a conclusion of net revenue reporting for an item: a) the amount the company earns is fixed b) the company has physical loss inventory risk after customer orders or during shipping c) the company has discretion in hiring administrative staff d) the company has a relationship with the other counterparty Exam Page -7

9 35. Under ASC , a vendor s sales incentive offered directly to consumers is limited to a vendor s incentive that includes all of the following except: a) that can be tendered by a consumer at resellers that accept manufacturer s incentives in partial (or full) payment of the price charged by the reseller for the vendor s product b) for which the reseller receives a direct reimbursement from the vendor (or authorized clearing house) based on the face amount of the incentive c) whereby the reseller is subject to an agency relationship with the vendor, whether expressed or implied, in the sales incentive transaction between the vendor and the consumer d) that requires the customer to remit the coupon directly to the vendor and bypass the reseller 36. In ASC 605, sales incentive arrangements that meet all of four criteria for a vendor sales incentive should be recorded by the reseller as: a) revenue b) a contra expense c) a deferred credit d) a credit to stockholders equity 37. A company receives a cash rebate from a vendor. In accordance with ASC Subtopic , the cash rebate should be accounted for as: a) a reduction of cost of sales b) revenue c) a deferred credit d) a credit to stockholders equity 38. There are at least three situations under which MACRS may not be adequate for GAAP which include all of the following except: a) leasehold improvements b) depreciation limits on certain listed motor vehicles c) Section 179 expense d) depreciation on manufacturing equipment 39. Even with the recording of the Section 179 deduction, there are a few options available to avoid having to maintain two depreciation schedules, one for book and one for tax purposes. Those options include all of the following except: a) record tax depreciation for book purposes based on the argument that the difference is not material b) record tax depreciation for GAAP and note a GAAP departure in the report c) convert to income tax basis (OCBOA) financial statements d) record the tax depreciation for book purposes and argue that GAAP permits use of the Section 179 deduction regardless of whether it is material or not 40. The fair value of the use of an automobile that is included in an employee s W-2 should: a) be classified to compensation expense b) remain classified as automobile expense c) be included in cost of sales d) be included in the income statement under the caption imputed automobile expense 41. Assume a company has a five-year lease with escalations in the monthly lease payments over the five-year term. How should the rent be accrued to expense during the lease term: a) on a straight-line basis over the five-year lease b) in the same amounts as the lease payments c) using the effective rental method d) using a systematic and rational method 42. In accordance with ASC 840 (formerly FASB No. 13), an original lease and sublease should be accounted for as: a) a single lease b) two separate leases c) either a single lease or two separate leases at the lessor s option d) an operating lease Exam Page -8

10 43. GAAP provides that rental costs associated with a ground or building operating lease that are incurred during a construction period shall be recognized as: a) rent expense b) part of construction in progress c) an intangible asset and amortized over the construction period d) a split between rent expense and construction in progress 44. Costs of start-up activities should be: a) capitalized and amortized to expense b) expensed as incurred c) recorded as a contra-equity account d) allocated over the cost of all tangible and intangible assets on a prorata basis 45. With respect to disclosures on retirement plans, ASC requires that: a) defined contribution plan disclosures should be combined with disclosures for defined benefit plans b) defined contribution plan disclosures should be shown separate from disclosures for defined benefit plans c) plans with assets in excess of 10% of cumulative plan total assets should be combined regardless of whether such plans are defined contribution or defined benefit plans d) GAAP does not provide any particular rules to deal with defined contribution plan versus defined benefit plan disclosures 46. For purposes of the cash flow statement, which of the following is a cash equivalent: a) money market funds b) equity securities c) restricted cash accounts d) investments in long-term bonds 47. Assuming a company purchases a fixed asset for $50,000 by borrowing $50,000 from the seller with no cash exchanging hands. How should this transaction be presented on the statement of cash flow: a) as a $50,000 investing activity outflow and a $50,000 financing activity inflow b) as a $50,000 operating activity outflow and a $50,000 financing activity inflow c) disclosed as a non-cash investing and financing transaction not presented on the statement of cash flows d) as supplementary information in a separate section after the notes to financial statements 48. With respect to the statement of cash flows, ASC 230 requires that a purchase of net assets be presented as: a) one net outflow in the investing activities section b) one net outflow in the financing activities section c) one net inflow in the financing activities section d) a split net outflow in both the financing and investing activities sections 49. A financial instrument includes which of the following: a) cash and cash equivalents b) equipment c) intangibles d) prepaid items 50. Examples of group concentrations for which disclosure is required include all of the following except: a) a large percentage of accounts receivable are due from customers in one industry b) a significant portion of a bank s loan portfolio is due from customers within a specific geographic region c) a large amount of a company s cash is held in one bank d) a large percentage of a company s total assets consist of equipment Exam Page -9

11 51. ASC 275 (formerly SOP 94-6) disclosures related to key personnel. a) requires b) does not require c) does not permit d) does not address 52. In preparing personal financial statements, which of the following tax liabilities must be recorded on the statement of net worth: a) estimated income tax liability b) estimated excise tax liability c) estimated gift tax liability d) estimated estate tax liability 53. Facts: Johnny is the sole shareholder of Johnny s Greasy Hot Dogs, Inc. Johnny contributes a lard sifting machine to the corporation. At what amount should Johnny record the machine on the books of the corporation for GAAP purposes: a) at historical cost in the hands of Johnny b) at fair value of the machine given c) at fair value of the equity d) at net present value of future cash flows to be generated from use of the machine 54. A related party receivable in connection with the issuance of common stock should be shown on the balance sheet as: a) a short-term loan receivable b) a reduction of shareholders equity c) a long-term loan receivable d) a sundry receivable, presented net of allowance for doubtful accounts 55. ASC (formerly SOP 93-7) requires that all advertising that is direct-response advertising be: a) capitalized as an asset and amortized to expense b) expensed c) partially expensed at inception d) shown as a separate line item on the income statement 56. Company X engages in an advertising barter transaction with Company Y. Assume further that the fair value of the advertising surrendered by X is determinable based on X having received cash for similar advertising sold to buyers in the past few months. How should X account for the transaction and record the advertising received: a) at the fair value of the advertising surrendered b) at the fair value of the advertising received c) at the cost of the advertising surrendered d) at the cost of the advertising in the hands of Y 57. Which of the following relates to the presentation of income tax expense with respect to a partnership financial statement: a) GAAP does not permit the presentation of income tax expense on a partnership income statement b) GAAP requires that income tax expense relates to the partners be imputed to the partnership and presented on the income statement c) GAAP allows, but does not require, that such expense be presented on the partnership s income statement d) GAAP requires that income tax of the partners be disclosed in the notes of the partnership s financial statements but not recorded as an expense 58. If an S corporation is required to make a fiscal year tax payment under Section 444 of the Internal Revenue Code (IRC), the payment should be presented on the balance sheet as a: a) deferred tax asset b) deferred tax liability c) debit in the accrued federal tax account d) deposit 59. If it is that a tax position will be sustained upon IRS or state tax examination, the amount of the tax effect of the tax position is retained on the financial statements. a) more likely than not b) probable c) reasonably possible d) remote Exam Page -10

12 60. Losses and costs incurred as a result of terrorist acts and acts of God should be classified as: a) an extraordinary item on the income statement b) part of income from continuing operations in the statement of operations c) part of discontinued operations d) a deferred asset on the balance sheet 61. A liability should be recognized as of the date of a terrorist act for salaries and employee benefits that will continue to be paid while operations are temporarily suspended if four criteria are met, which include all of the following except: a) employees services have already been rendered b) rights to compensation vest or accumulate c) payment of the compensation is probable d) the employee s employment continues after the transaction 62. In adopting fresh start reporting for a company emerging from Chapter 11, assets and liabilities are: a) recorded at book value immediately before the bankruptcy b) revalued as of the confirmation date c) revalued as of the value just prior to the bankruptcy d) never revalued 63. Under fresh start reporting, the excess of the reorganization value over the fair value of the identified assets and liabilities is: a) recorded as a charge on the income statement b) charged to equity c) allocated to goodwill d) assigned to an intangible asset called excess reorganization value and amortized 64. ASC 350 (formerly EITF 00-02) states that costs incurred during the Stage 1: Planning Stage of web site development costs should be: a) capitalized and not amortized b) expensed as incurred c) both capitalized and expensed depending on the types of costs incurred d) capitalized and amortized 65. ASC 350 states that work done in the postimplementation/operation stage of web site development, that represents upgrades and enhancements that provide additional functionality are: a) capitalized b) expensed c) split with a portion capitalized and a portion expensed d) allocated to any other assets that are capitalized 66. In ASC 350, in accounting for the costs during the development stage of web-site development, the types of costs capitalized include all of the following except: a) general and administrative expense b) external direct costs c) payroll and payroll-related costs d) interest costs 67. Which of the following is an eligible item for which the fair value option is available: a) loans payable b) inventories c) plant and equipment d) investments in a subsidiary that an entity must consolidate 68. An entity may choose to elect the fair value option on which of the following dates: a) initiation date b) election date c) conversion date d) option date Exam Page -11

13 69. Once an entity elects the fair value option for a particular financial asset or liability, which of the following is true: a) the election is irrevocable b) the election is reversible c) the election is revocable on the next option date d) the election may be reversed by restating retained earnings 70. A nonpublic entity shall evaluate subsequent events through the date that the financial statements are: a) available to be issued b) issued c) ready to be issued d) expected to be issued 71. A list of deferred M-1 items that are not applicable to income tax basis financial statements includes all of the following except: a) no vacation accruals b) no allowance for bad debts c) no meals and entertainment d) no related party accruals 72. For not-for-profit organizations, income tax basis financial statements can be very effective at reducing overall engagement time. Examples of items that result in time savings include all of the following except: a) donated services are not recorded b) statement of cash flows is not required c) a statement of functional expenses is not required d) a statement of activity is not required 73. With respect to an accounting change for tax purposes in income tax basis financial statements, the change is: a) treated in accordance with tax law, usually a 481(a) adjustment spread prospectively b) treated as an accounting change in accordance with ASC 250 (formerly FASB No. 154) c) treated as an accounting change for GAAP even though it is included in income tax basis financial statements d) treated as a flow-through item on the income statement 74. With respect to income tax basis financial statements, nontaxable revenues and nondeductible expenses are: a) included in income tax basis statements and included as part of taxable income b) included in income tax basis statements yet not included as part of taxable income c) excluded from income tax basis statements altogether d) partially included in income tax basis statements depending on the amount 75. There are four ways to present nontaxable revenues and nondeductible expenses in income tax basis financial statements that include all of the following except: a) as a separate line item in the balance sheet entitled deferred non-taxable and nondeductible items b) as income and expense items on the income statement c) as adjustments through retained earnings d) as a disclosure only 76. In an OCBOA compilation report that omits substantially all disclosures, the term required that is found in the last paragraph of the compilation report, is replaced with: a) usually suggested b) typically included c) ordinarily included d) consistently included 77. Which of the following is not an appropriate title for an OCBOA (income tax basis) financial statement: a) balance sheet- income tax basis b) statement of income- income tax basis c) statement of assets, liabilities and equityincome tax basis d) statement of operations 78. OCBOA disclosures should be: a) similar informative disclosures to those required by GAAP b) identical disclosures to those required by GAAP c) reasonably consistent with those required by GAAP d) consistent with those required by GAAP Exam Page -12

14 79. If a statement of cash flows is presented in OCBOA statements, the cash flow statement should: a) conform to the requirements for a GAAP statement or disclose the substance of those requirements b) be presented in the OCBOA cash flows statement format c) reconcile to cash and not to cash and cash equivalents d) include a disclosure explaining the differences in the cash flow statement 80. If a company uses the cash basis to prepare its income tax return, which method must it use to prepare income tax basis financial statements: a) cash basis b) accrual basis c) regulatory basis d) any basis permitted by the Internal Revenue Code Congratulations you ve completed the exam! Exam Page -13

15 GAAP: INSIDE AND OUT #5270J/QAS5270J (16 CPE hours) ANSWER SHEET (4/13) Important Note: For certification, this answer sheet must be completed and submitted to PES for grading within one year from the date of purchase. Please use black ink and print for quicker processing thank you. Name (as it appears on your license) Address City State Zip Home Work Daytime Phone ( ) address License Number State Expiration Date CPA, CFP, EA (circle one) If course was ordered by another party, please indicate name here: GRADING OPTIONS Please choose only ONE of the following: ONLINE GRADING Visit our website at o Login to your account (if you are a first-time user, you must set up a new user account). o Go to the MY CPE tab and click the My CPE Exams in Progress folder. o If your exam is not already located in this folder, click Add Exam Previously Purchased and follow the instructions. Mail Mail your exam to: PES, 4208 Douglas Blvd., Ste 50, Granite Bay, CA Fax Fax your exam to (916) and choose one of the following options: Please: o mail my results only or o fax o phone my results to: ( ) PLEASE INDICATE YOUR ANSWER BY FILLING IN THE APPROPRIATE CIRCLE A B C D A B C D A B C D A B C D 1. O O O O 21. O O O O 41. O O O O 61. O O O O 2. O O O O 22. O O O O 42. O O O O 62. O O O O 3. O O O O 23. O O O O 43. O O O O 63. O O O O 4. O O O O 24. O O O O 44. O O O O 64. O O O O 5. O O O O 25. O O O O 45. O O O O 65. O O O O 6. O O O O 26. O O O O 46. O O O O 66. O O O O 7. O O O O 27. O O O O 47. O O O O 67. O O O O 8. O O O O 28. O O O O 48. O O O O 68. O O O O 9. O O O O 29. O O O O 49. O O O O 69. O O O O 10. O O O O 30. O O O O 50. O O O O 70. O O O O 11. O O O O 31. O O O O 51. O O O O 71. O O O O 12. O O O O 32. O O O O 52. O O O O 72. O O O O 13. O O O O 33. O O O O 53. O O O O 73. O O O O 14. O O O O 34. O O O O 54. O O O O 74. O O O O 15. O O O O 35. O O O O 55. O O O O 75. O O O O 16. O O O O 36. O O O O 56. O O O O 76. O O O O 17. O O O O 37. O O O O 57. O O O O 77. O O O O 18. O O O O 38. O O O O 58. O O O O 78. O O O O 19. O O O O 39. O O O O 59. O O O O 79. O O O O 20. O O O O 40. O O O O 60. O O O O 80. O O O O Please complete the attached course evaluation your opinion is extremely valuable. Exam Page -14

16 GAAP: Inside and Out #5270J/QAS5270J - Course Evaluation Rate on a scale of 1-10 with 1 being poor and 10 being excellent. 1. The course met the course objectives described in the promotional material. 2. The course was up to date, held my interest, was timely, and effective. 3. The course materials were understandable, valuable, and suitable for a correspondence course. 4. The amount of advance knowledge and stated prerequisites were appropriate. 5. The completion time was appropriate for the number of credits allowed. 6. The course met my professional education needs. Please answer the following questions mark/rate any and all that may apply 1. How would you rate PES s order desk customer service 2. What can PES do to keep you as a valued customer? 3. Any other comments regarding this course or our company would be appreciated. 4. What other courses/subjects would you like to see PES offer in the future?, Mail to: Professional Education Services, LP 4208 Douglas Blvd., Ste 50, Granite Bay, CA Exam Page -15