AICPA CPA-Financial Exam - Topic 1 Question 37 Discussion

Choice 'd' is correct. The criteria for determining which investments are treated as cash equivalents would be part of the summary of significant accounting policies.

Choice 'a' is incorrect. The maturity dates of noncurrent debts are required disclosures, but are not a part of the summary of significant accounting policies.

Choice 'b' is incorrect. The terms for convertible debt to be exchanged for common stock are not accounting policies; they would be disclosed separately.

Choice 'c' is incorrect. The concentration of credit risk of all financial instruments by geographic region may be a required segment disclosure, especially for financial institutions. However, it would not be a part of the summary of significant accounting policies.