Wiley - Wiley CPA Examination Review 2013 Focus Notes, Financial Accounting and Reporting

CONTENTS

Copyright 2013 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada.

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ISBN: 978-1-118-41059-2 (paperback); 978-1-118-60749-7 (ebk); 978-1-118-60751-0 (ebk); 978-1-118-60770-1 (ebk)

PREFACE

This publication is a comprehensive, yet simplified study program. It provides a review of all the basic skills and concepts tested on the CPA exam, and teaches important strategies to take the exam faster and more accurately. This tool allows you to take control of the CPA exam.

This simplified and focused approach to studying for the CPA exam can be used:

• As a handy and convenient reference manual
• To solve exam questions
• To reinforce material being studied

Included is all of the information necessary to obtain a passing score on the CPA exam in a concise and easy-to-use format. Due to the wide variety of information covered on the exam, a number of techniques are included:

• Acronyms and mnemonics to help candidates learn and remember a variety of rules and checklists
• Formulas and equations that simplify complex calculations required on the exam
• Simplified outlines of key concepts without the details that encumber or distract from learning the essential elements
• Techniques that can be applied to problem solving or essay writing, such as preparing a multiple-step income statement, determining who will prevail in a legal conflict, or developing an audit program
• Pro forma statements, reports, and schedules that make it easy to prepare these items by simply filling in the blanks
• Proven techniques to help you become a smarter, sharper, and more accurate test taker

This publication may also be useful to university students enrolled in Intermediate, Advanced and Cost Accounting; Auditing, Business Law, and Federal Income Tax classes; Economics, and Finance classes.

Good Luck on the Exam,

Ray Whittington, PhD, CPA

ABOUT THE AUTHOR

Ray Whittington , PhD, CPA, CMA, CIA, is the dean of the College of Commerce at DePaul University. Prior to joining the faculty at DePaul, Professor Whittington was the Director of Accountancy at San Diego State University. From 1989 through 1991, he was the Director of Auditing Research for the American Institute of Certified Public Accountants (AICPA), and he previously was on the audit staff of KPMG. He previously served as a member of the Auditing Standards Board of the AICPA and as a member of the Accounting and Review Services Committee and the Board of Regents of the Institute of Internal Auditors. Professor Whittington has published numerous textbooks, articles, monographs, and continuing education courses.

ABOUT THE CONTRIBUTOR

Natalie T. Churyk , PhD, CPA is the Caterpillar Professor of Accountancy at Northern Illinois University. She teaches in the undergraduate and M.A.S. programs as well as developing and delivering continuing professional education in Northern Illinois Universitys CPA and CIA Review programs. Professor Churyk has published in professional and academic journals. She serves on state and national committees relating to education and student initiatives and is a member of several editorial review boards. Professor Churyk is a coauthor on two textbooks: Accounting and Auditing Research: Tools and Strategies and Mastering the Codification and eIFRS: A Case Approach .

Financial statements are designed to meet the objectives of financial reporting: