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AICPA CPA-Financial Exam - Topic 1 Question 51 Discussion

Actual exam question for AICPA's CPA-Financial exam
Question #: 51
Topic #: 1
[All CPA-Financial Questions]

Under FASB Statement of Financial Accounting Concepts #5, which of the following items would cause earnings to differ from comprehensive income for an enterprise in an industry not having specialized accounting principles?

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Suggested Answer: A

Choice 'a' is correct. Unrealized loss on investments in marketable equity securities available for sale would cause earnings to differ from comprehensive income for an enterprise in an industry not having specialized accounting principles.

Rule: FAC 5 defines 'earnings' for a period to exclude certain cumulative accounting adjustments and other non-owner changes in equity (such as changes in market value of marketable securities available for sale) that are included in comprehensive income for a period.


by Dorothy at May 06, 2022, 09:14 PM

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Desire
4 months ago
Not sure about D, seems a bit tricky.
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Jamey
4 months ago
I agree with A, it makes the most sense here.
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Helga
4 months ago
Wait, isn't C just a regular loss?
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Adell
4 months ago
I think B could also be a contender.
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Ivory
5 months ago
A is definitely the right choice.
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Cassi
5 months ago
I'm a bit confused by the different caching and capacity options. I'll need to review the details of each one to make sure I understand the differences and can pick the right strategy.
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Ronna
5 months ago
I'm a little confused by this question. The code fragment doesn't seem to provide enough information for me to confidently select the right answer. I'll need to review my notes and try to apply the concepts to this specific scenario.
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Gladys
5 months ago
Hmm, I'm a bit confused by the number of options here. I'll need to carefully review each one to determine the best approach.
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Mabel
5 months ago
Okay, I think I've got it. The key is to remove the undesired headers, so I'll go with option C and enter them in the 'Response Header Erase' field.
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