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I’ve come to expect some trick questions and know what kind of things to look for. But Wiley often asks unclear questions.
For example, he’ll give you a number for net income before items potentially requiring adjustments, and then some items that may require adjusting, and it’s not clear if those items were included in net income without adjustments, or they weren’t included in net income at all.
Or he’ll give a balance sheet with AR of 16,000, then ask for adjusting entries and tell you that ending AR was 21,000. And he doesn’t make it clear if the extra 5,000 is from sales that weren’t recorded, or sales that were incorrectly recorded as cash sales, or what.
My experience shows that, for the above two examples, Wiley has already included the items in net income and they only need possible adjusting entries, and that an addition to AR should be recorded as sales. But Wiley didn’t write the CPA exam.
Does anyone remember similar unclear questions on the exam? Not tricky questions where the info is there and you need to recognize it, but questions where the info isn’t given and you’re supposed to assume something.
And if so, what are you expected to assume?
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