AICPA Exam CPA-Financial Topic 1 Question 77 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 77
Topic #: 1

[All CPA-Financial Questions]

Conceptually, interim financial statements can be described as emphasizing:

ATimeliness over reliability.

BReliability over relevance.

CRelevance over comparability.

DComparability over neutrality.

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. Change in lives of fixed assets is a change in accounting estimate.

by Josphine at Nov 26, 2023, 09:42 PM

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Raymon

2 months ago

I'm going with A. Timeliness is the name of the game when it comes to interim statements. Reliability? Psh, that's for the end-of-year report. Right now, I just need to know how many lattes the CEO bought this quarter.

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Queenie

2 months ago

Haha, D? Comparability over neutrality? What kind of nonsense is that? I think the person who wrote this question must have been sampling the company's interim financials a little too closely.

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Rasheeda

2 months ago

C is the way to go. Relevance trumps all in the world of interim reporting. As long as the information is useful, who cares about comparability? I'm not trying to benchmark my company against the competition here.

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Raelene

2 months ago

I'm going with B. Reliability is key when it comes to financial reporting, even if it takes a bit longer to prepare. Nobody wants to make decisions based on sketchy interim data.

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Dorthy

28 days ago

That's true, we need to find a balance between timeliness and reliability in financial reporting.

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Elfrieda

29 days ago

Yes, timeliness is important, but we can't sacrifice reliability for it.

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Nohemi

1 months ago

But don't you think timeliness is also important in making quick decisions?

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Vivan

1 months ago

I agree, reliability is crucial in financial reporting.

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Thad

2 months ago

Definitely A. Interim statements are all about getting the information out there quickly, even if it's not 100% reliable. Who cares about accuracy when you need to keep investors updated, right?

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