TITLE : FINANCIAL ACCOUNTING: OBJECTIVES QUESTIONS AND EXPLANATIONS. 4TH ED.

The purpose of this study manual is to help you understand financial accounting principles and procedures, and their applications. In turn, these skills will enable you to perform better on your undergraduate examinations, as well as look ahead to (and prepare for) professional examinations.

One of the major benefits of this study manual is comprehensive coverage of financial accounting topics. Accordingly, when you use this study manual to help prepare for financial accounting courses and examinations, you are assured of covering virtually all topics that could reasonably be expected to be studied in typical college or university intermediate and advanced financial accounting courses.

The question-and-answer format is designed and presented to facilitate effective study. Students should be careful not to misuse this text by referring to the answers before independently answering each question.

The majority of the questions are from past CIA, CMA, and CPA examinations. Although a citation for the source of each question is provided, a substantial number have been modified to accommodate changes in professional pronouncements, to clarify questions, and/or to emphasize a financial accounting concept or its application. In addition, hundreds of publisher-written questions test areas covered in current textbooks but not directly tested on accounting certification examinations. Finally, we are pleased to be using some questions submitted by accounting professors.

Note that this study manual should not be relied upon to prepare for the professional examinations. You should use review manuals specifically developed for each examination. CIA EXAMINATION REVIEW, CMA EXAMINATION REVIEW, and CPA EXAMINATION REVIEW are up to date and comprehensively cover all material necessary for successful completion of these examinations. An order form is provided on page 701.

Thank you for your interest in this study manual. We deeply appreciate the many letters and suggestions received from accounting students and educators during the past years, as well as from CIA, CMA, and CPA candidates. Please send us your suggestions, comments, and corrections concerning this edition. The last page has been designed to help you note corrections and suggestions throughout your study process. Please tear it out and mail it to us with your suggestions.

Please read the first three chapters carefully. They are very short but nonetheless very important.

PREFACE FOR ACCOUNTING PRACTITIONERS

The first purpose of this study manual is to permit you to assess your technical proficiency concerning financial accounting standards and special skills. The second purpose is to facilitate your review and update of financial accounting standards and techniques with our compendium of nearly 2,000 objective questions. The third purpose is to provide CPE credit for your self-assessment and review/ update study effort.

This new approach to CPE is both interactive and intense. You should be continuously challenged to answer each question correctly. When you answer a question incorrectly or have difficulty, you should pursue a complete understanding by reading the answer explanation and consulting reference sources as necessary.

Most of the questions in FINANCIAL ACCOUNTING OBJECTIVE QUESTIONS AND EXPLANATIONS were taken from various professional examinations, but many have been revised, adapted, etc., to provide broader and up-to-date coverage of the financial accounting body of technical knowledge. While many are from the CPA exam, others are from the CIA and CMA exams. Thus, you have an opportunity to consider the appropriateness of pursuing these other accounting certifications. In addition, hundreds of publisher questions cover material not directly tested on the accounting certification examinations.

Finally, we ask for any supplemental comments, reactions, suggestions, etc. that you may have as you complete our CPE program. The last page of this study book has been designed to help you note corrections and suggestions throughout your study process. Please attach it to the Course Evaluation (handwritten notes are fine).

Chapters One through Three of FINANCIAL ACCOUNTING OBJECTIVE QUESTIONS AND EXPLANATIONS are directed primarily to accounting and auditing students. Those practitioners interested in multiple certification, however, may find the discussion of the CIA and CMA certification programs in Chapter Three to be useful. If, as you work through this study book and take the open-book CPE final exams, you find you need to refer to a current textbook, Chapter One contains a list of current titles. You should be sure to read carefully the "Introduction: How to Use This CPE Program" in the accompanying CPE book.

Thank you for your interest, and we look forward to hearing from you.

Irvin N . Gleim William A. Collins July 15, 1988