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AICPA Exam CPA-Financial Topic 1 Question 92 Discussion

Actual exam question for AICPA's CPA-Financial exam
Question #: 92
Topic #: 1
[All CPA-Financial Questions]

Which of the following should be disclosed in a summary of significant accounting policies?

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Suggested Answer: B

Choice 'B' is correct. If comparative FS are issued, restate prior year's FS. If comparative FS are not issued, restate prior year-end's retained earnings account by 'adjusting' (net of tax) the opening balance of the current retained earnings statement.


by Sheridan at Jul 10, 2024, 12:49 AM

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Lynelle
12 days ago
Hey, at least they didn't ask about the secret formula for Coca-Cola. That's one accounting policy I'd keep under lock and key!
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Bernardo
17 days ago
D? Really? Segment information is interesting, but not as crucial as the other options.
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Herminia
22 days ago
I'm going with C. Depreciation expense is a key part of the financial statements.
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Ona
1 months ago
B sounds good to me - future minimum lease payments are important information for users to know.
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Sherita
2 days ago
Depreciation expense is also important to disclose, as it impacts the company's financial statements and profitability.
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Clorinda
15 days ago
I think it's important to disclose the basis of profit recognition on long-term construction contracts as well, to give insight into revenue recognition.
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Cecily
21 days ago
I agree, future minimum lease payments are crucial for users to understand the financial obligations of the company.
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Alfreda
1 months ago
The basis of profit recognition on long-term construction contracts seems like the most relevant disclosure here. A is the way to go!
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Kassandra
16 days ago
Composition of sales by segment can provide valuable information to stakeholders.
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Zachary
20 days ago
Depreciation expense is important to include in the summary of significant accounting policies.
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Belen
28 days ago
I think future minimum lease payments should also be disclosed to give a clear picture.
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Ashlyn
1 months ago
I agree, the basis of profit recognition on long-term construction contracts is crucial.
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Lanie
2 months ago
I think D should be disclosed too, to provide transparency on sales composition.
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Leota
2 months ago
I agree with Johana. B should also be disclosed to show future financial obligations.
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Johana
2 months ago
I think A should be disclosed because it affects the recognition of profit.
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