Discuss AICPA CPA-Financial Exam Topic 1 Question 37

The summary of significant accounting policies should disclose the:

AMaturity dates of noncurrent debts.

BTerms for convertible debt to be exchanged for common stock.

CConcentration of credit risk of all financial instruments by geographical region.

DCriteria for determining which investments are treated as cash equivalents.

Suggested Answer: D

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.

Get Premium CPA-Financial Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

8 comments · newest first

Barrie 11 months ago

Not sure if all this info is really necessary in the summary.

Earleen 12 months ago

Cash equivalents criteria is a must-have in the summary!

Markus 12 months ago

Wait, are we really supposed to disclose credit risk by region?

Alona 12 months ago

I think terms for convertible debt are more important.

Gracia 1 year ago

Definitely need to disclose maturity dates of noncurrent debts!

Bulah 1 year ago

Hmm, this is a tricky one. I'm a bit confused about the relationship between the transaction data and the signature. I'll need to review my notes on transaction signing to figure this out.

Bong 1 year ago

Hmm, this looks like it's testing our understanding of intents and storage access. I think the key is to focus on the name of the activity - "write_to_external_storage" - which suggests the correct answer is D.

Rosio 1 year ago

I remember a question from practice on pricing strategies. I feel like promotional pricing means temporarily lowering prices, which sounds like C again.

AICPA CPA-Financial Exam - Topic 1 Question 37 Discussion