FAR-AMT Practice Test

These questions are part of the practice quiz. Start practicing

• What is the purpose of an Advisory Circular?
• How should subsequent events be treated in financial statements?
• The volume of the TCDS you would consult for antique aircraft information is which of the following?
• What FAR part describes the items that must be included in a maintenance entry by an A&P in the aircraft logbook?
• Which of the following is a valid airplane category used in certification that is associated with aerobatic capability?
• What happens if a derivative is not designated as a hedge?
• Which FAR Part governs certification for pilots and flight instructors?
• How is tax expense presented for temporary differences under ASC 740?
• Under ASC 815, how are derivatives generally accounted for?
• Which statement correctly describes temporarily restricted net assets?
• How are uncertain tax positions recognized?
• When does an investor apply the equity method?
• Which statement describes how prior periods are treated when a not-for-profit changes its accounting principle?
• Which topic would guide documentation of performed maintenance?
• How are payments for variable lease payments determined?
• Which statement about recognition of lease assets and liabilities is true at commencement under ASC 842?
• How is a contract asset created under ASC 606?
• If the rate implicit in a lease cannot be determined, which rate should be used to discount lease payments for initial measurement?
• In the scenario, splicing and reinforcing a stringer in the fuselage by an A&P mechanic is classified as a major repair or minor repair?
• Which documents are required to be on the aircraft when it is flown?
• The Structural Repair Manual (SRM) is used for repair information related to which part of the aircraft?
• When donor restrictions apply to contributions from not-for-profits, how are they released?
• Under ASC 606, which of the following is true about costs to fulfill a contract?
• What are the key differences in income statement presentation for lessees under ASC 842 between finance and operating leases?
• What does a Parts Manufacturer Approval authorize?
• Under ASC 842, when is a lease classified as a finance (capital) lease for a lessee?
• Under ASC 360, how is impairment tested for long-lived assets?
• When the local currency is different from the functional currency and remeasurement is performed, which approach is used for monetary and non-monetary items, and where are gains or losses recognized?
• What distinguishes the acquisition method for business combinations?
• How do inventory write-downs affect financial statements?
• Certification Procedures for Products, Articles, and Parts apply to:
• Which information must be included in the AD compliance record?
• How should contributions from not-for-profits be recognized when donor restrictions apply?
• The topic that covers INVESTIGATE AND ENFORCEMENT PROCEDURES is most closely associated with:
• Which FAR Part addresses maintenance, preventive maintenance, and alterations?
• Which document would a mechanic consult for repair procedures if damage is found in a primary or secondary structure?
• Which statement summarizes the required treatment for a change in accounting principle?
• When would retrospective restatement not be required for a change in accounting principle?
• Which topic explains how to complete Form 337?
• How is variable consideration with a constraint recognized in the transaction price?
• Which statement best describes fair value measurement for financial instruments?
• Which document is designed to inform the aviation community about materials of interest?
• Which set of records are considered permanent records (six items listed)?
• How is a contract modification that adds a new, non-distinct performance obligation treated?
• For a rare antique aircraft, which volume of the TCDS would contain the information?
• Which statement correctly describes permanent restrictions?
• Which advisory circular concerns airworthiness directives?
• In a business combination, what is the mechanism for recognizing a bargain purchase?
• Is it required to complete FAA Form 8010-4 if a malfunction is found?
• How is revenue recognized for long-term construction contracts under the cost-to-cost method?
• What are airworthiness alerts used for?
• Which statement best describes net asset use without donor restrictions?
• Which statement about Design & Construction is true?
• Which statement best describes airworthiness?
• Under ASC 606, revenue is recognized over time when which condition is satisfied?
• Civil Penalties are penalties for:
• What is the minimum age to obtain an FAA mechanic certificate (Airframe and Powerplant)?
• The Airworthiness Standards: Rotorcraft section applies to which category?
• The Type Certificate is a certification that the design of an aircraft or product meets applicable airworthiness standards and is eligible for production.
• In a contract with a long-term construction project, what method would you commonly use to measure progress toward completion?
• Which statement best describes net assets without donor restrictions in not-for-profit financial statements?
• What does the Type Certificate primarily certify?
• Which statement about net assets presentation is true?
• What is Form 337 used for?
• The 'I Certify' statement is used to indicate what?
• The repair involved reinforcing a stringer in which part of the aircraft?
• Which statement best describes the role of a Technical Standard Order?
• What component was spliced and reinforced in the described repair?
• How is intercompany profit in ending inventory eliminated on consolidation?
• How is stock-based compensation expense determined for awards with service-based vesting?
• Which description best defines a major repair?
• Under the equity method, how does amortization of the investee's goodwill and intangible assets affect the investor's financial statements?
• Which best defines an AIRCRAFT?
• A Supplemental Type Certificate (STC) is the FAA approval for a major modification or alteration to an aircraft, engine, or propeller from the approved design.
• Parts Manufacturer Approval (PMA) is authorization to manufacture replacement parts for sale for use on aircraft.
• How are asset retirement obligations (ARO) recognized?
• What type of information is found in AC43.13-1B?
• The content labeled 'Appendix G' is associated with which type of guidance?
• Under ASC 606, when is a warranty considered a separate performance obligation?
• How is discontinued operations presented in the income statement?
• Which statement best summarizes the relationship between the described repair and the fuselage structure?
• What describes the relationship between Type Certificate and Supplemental Type Certificate?
• Which topic would cover the duties of FAA inspectors and their representatives?
• If an A&P mechanic notices damage in a primary or secondary structure, where can he look for repair information?
• Design & Construction focuses on which aspect of the aircraft certification process?
• Which entity issues Airworthiness Directives that require mandatory compliance by aircraft operators?
• Which statement best describes the purpose of the advisory circular referenced as AC 43.13-1B?
• Which regulatory reference defines the classification of repairs as minor or major?
• An Airworthiness Certificate certifies that an aircraft is in a condition for safe operation and conforms to its approved type design.
• When is revenue recognized for licenses of IP that provide access over time?
• Under FAR Part 65, which is NOT an airman certificate category?
• Which advisory circular covers maintenance records?
• What FAR part governs the issuance of an airworthiness certificate?
• In consolidation, intercompany profits on sales to other group entities are treated how?
• 14 CFR Part 43 covers which activities?
• Which of the following is also a permanent-record item alongside time in service and life limited parts?
• Civil penalties are:
• Which statement is true about the repair described in the material?
• An ADL 'Required within the next 100 hours of time in service after the effective date of this AD' is an example of what kind of statement?
• Which FAR requires an A&P to make a maintenance record entry after he maintains, rebuilds, or alters an aircraft?
• The acronym AC in AC 43.13-1B stands for which type of FAA document?
• What is the initial measurement of a lease liability?
• How is contingent consideration accounted for in a business combination?
• Which topic would you consult to understand the training requirements for aviation maintenance technicians?
• Where in the FARs can an A&P mechanic find information on the items that should be in his checklist for an annual or 100-hour inspection?
• When there is a change in accounting principle, which approach is required?
• Who may sign the 'I Certify' statement on a maintenance release?
• Which topic includes information about individuals who represent the FAA administrator in aviation matters?
• Which document specifically communicates materials of interest to the aviation community?
• Under the cost-to-cost method, revenue for long-term construction contracts is recognized
• When an A&P mechanic signs the airworthy certification statement during an annual or 100-hour inspection, what does he constitute?
• Which FAR Part contains the general operating and flight rules?
• What distinguishes the recoverability test from impairment measurement?
• Which standard would govern certification and repair eligibility for rotorcraft components?
• Which inspection occurs every 12 calendar months for most aircraft?
• Certificate Action involves changes or actions related to:
• How does the equity method reflect the investee’s goodwill and intangible assets?
• How is a contract modification that adds a new, distinct goods/services accounted for under ASC 606?
• How is fair value defined for financial instruments?
• W/B is an abbreviation for:
• Which statement best describes Level 3 inputs in the fair value hierarchy?
• Part 125 covers certification and operation of which type of aircraft?
• Which item is included in permanent records as one of the six items?
• Related-party transactions disclosure requires which information?
• Which activity is explicitly described as maintenance-related under Part 43?
• How is impairment treated for indefinite-lived intangible assets?
• Which scenario would indicate revenue should be recognized at a point in time rather than over time?
• Which marking is legally required to be displayed on the exterior of an aircraft to identify it?
• What is the difference between finite-lived and indefinite-lived intangible assets?
• Part 121 covers operating requirements for domestic, flag, and supplemental operations for which aircraft category?
• What happens to a contract asset when the right to payment becomes unconditional?
• Which document would you consult to determine how to dispose of life-limited parts?
• Temporary maintenance records must be kept for how long after the work is performed?
• What is the purpose of eliminating intercompany balances in consolidation?
• What is the purpose of Disposition of Life Limited Parts?
• How are costs incurred to fulfill a contract treated?
• Airworthiness Standards: Engines addresses which area?
• Which statement about the 'no alternative use' criterion is true?
• Where in the FARs would you find regulations dealing with identification marks (registration marks) for aircraft?
• Which topic would you expect to find regulatory guidance for navigation equipment such as DME?
• In translating a foreign subsidiary's financial statements into the reporting currency, which rates are used for assets and liabilities and for revenues and expenses, respectively?
• Certificate Action refers to:
• Which topic addresses operating requirements for commuter and on-demand aviation operations?
• Which statement correctly distinguishes Major Alteration from Major Repair?
• Which document typically contains the operating limitations, recommended procedures, and performance data for an aircraft?
• Asset retirement obligations under GAAP recognition, what is done with the related asset?
• Whose responsibility is it that all ADs on an aircraft are complied with?
• Which statement best describes the role of the owner-operator with respect to AD compliance?
• How is a VIE consolidated?
• How is the effective portion of a cash flow hedge recognized?
• Which advisory circular covers Distance Measuring Equipment (DME)?
• How is goodwill impairment determined under US GAAP?
• Airworthiness Standards: Propellers & Rotors covers which topic?
• Temporary restrictions are satisfied by actions or the passage of time. Which statement aligns with that?
• Which factor is included in the examples of Major Alteration scope, as not the specs?
• Which statement about earnings per share calculation when there are potential dilutive securities is correct?
• Who performed the described repair in the scenario?
• Major Repair is defined as a repair that, IF IMPROPERLY DONE, MIGHT APPRECIABLY AFFECT W/B, PERFORMANCE, FLIGHT CHARACTERISTICS, ETC.
• Under ASC 815, which statement about hedges is true?
• Which statement is true about the impairment measurement amount when a long-lived asset is not recoverable?
• Level 2 inputs in the fair value hierarchy are best described as:
• How is a lease modification accounted for by a lessee?
• Where would a mechanic find the definition of a major repair?
• Which of the following statements about impairment of long-lived assets under ASC 360 is true?
• What information must be recorded in the aircraft's logbook when maintenance or alterations are performed?
• Which FAR Part governs identification and registration markings of civil aircraft?
• Which statement describes finite-lived and indefinite-lived intangible assets?
• Which organization issues the rules referenced in the material regarding aircraft repairs?
• Under ASC 606, if a warranty provides only conformity assurance, how is it accounted?
• Major Alteration is defined as an alteration not listed in the specifications; which of the following is NOT listed as an example in those specifications?
• Which topic concerns the facilities and organizations authorized to perform maintenance and alterations?
• When a lease is modified, which statement is true?
• Under ASC 360, if undiscounted cash flows forecast show the asset is recoverable, what is the impairment amount?
• Which CFR Part deals with aircraft registration and the certificate of registration?
• Certification Procedures apply to:
• Which part of 14 CFR Part 43 contains Appendix A related to repairs?
• Noncash investing and financing activities must be disclosed in the statement of cash flows how?
• Which topic is most closely related to certification and oversight of maintenance stations?
• In consolidation, how should intercompany profits embedded in ending inventory be treated?
• What happens when donor restrictions are satisfied or expire?
• If costs to fulfill a contract do not relate directly to the contract, generate or enhance resources, or are not expected to be recovered, how are they accounted?
• A Special Flight Permit allows a flight under defined conditions for a flight that would otherwise be prohibited.
• How are intercompany balances and transactions eliminated in consolidation?
• In the given material, the stringer is described as a structural element located in which area of the aircraft?
• Permanent restrictions are best described as donor-imposed restrictions that require which of the following?
• The term 'stringer' refers to a structural member in the context of aircraft structures. Which of the following best describes it?
• What is the purpose of Instructions for Continued Airworthiness?
• A Technical Standard Order (TSO) is a FAA published standard for the manufacturing of components and parts that can be installed on aircraft without additional testing.
• According to the principal-versus-agent concept, if the entity controls the goods/services before transfer, it is the principal and recognizes gross revenue; if not, it is the agent and recognizes net revenue.
• Which advisory circular addresses malfunction or defect reporting?
• Which document would you consult to understand how repairs are classified as minor or major?
• How is CECL measured for financial assets?
• Which manual specifies the minimum equipment that must be operating and installed for flight?
• Major Alteration is defined as an alteration not listed in which specifications?
• For a change in accounting principle, which statement is true?
• Which document proves that an aircraft is airworthy and safe for flight after maintenance?
• The regulation governing identification marks such as registration marks is found in which FAR part?
• An overhaul of a pressure-type carburetor is classified as which type of repair?
• Impairment for indefinite-lived intangible assets: impairment method?
• In the context of restoring an aircraft to service after maintenance, who holds the authority to approve return to service following the airworthy certification statement?
• Which item describes the scope of training in aviation maintenance technician schools?
• How is the difference between principal and agent determined for revenue recognition?
• How is the noncontrolling interest presented in consolidated financial statements?
• How are changes in accounting principle disclosed?
• FAA Form 8010-4 is used for what purpose?
• Which organization issues airman certificates such as mechanics and inspectors?
• AC 43.13-1B is an example of which type of FAA publication?
• Which statement best describes revenue recognition over time versus at a point in time?
• The airworthiness standards for normal, utility, acrobatic, and commuter category airplanes establish what for certification?
• Which statement is true regarding retrospective restatement when changing accounting principle?