AICPA Exam CPA-Business Topic 3 Question 86 Discussion

Actual exam question for AICPA's CPA Business Environment and Concepts exam

Question #: 86
Topic #: 3

[All CPA Business Environment and Concepts Questions]

In planning and controlling capital expenditures, the most logical sequence is to begin with:

AAnalyzing capital addition proposals.

BAnalyzing and evaluating all promising alternatives.

CIdentifying capital addition projects and other capital needs.

DDeveloping capital budgets.

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct. The most logical sequence in planning and controlling capital expenditures is to begin with identifying capital addition projects and other capital needs.

Choice 'a' is incorrect. Analyzing capital addition proposals omits other capital needs.

Choice 'b' is incorrect. Analyzing and evaluating all promising alternatives is beyond the scope of planning and controlling capital expenditures.

Choice 'd' is incorrect. Developing capital budgets is the same as planning and controlling capital expenditures.

by Karrie at Apr 28, 2024, 07:39 PM

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Cortney

1 days ago

What do you think the right answer is for capital expenditures sequence?

upvoted 0 times

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