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AICPA CPA-Financial Exam - Topic 1 Question 92 Discussion

Which of the following should be disclosed in a summary of significant accounting policies?
B) Future minimum lease payments in the aggregate and for each of the five succeeding fiscal years.
A) Basis of profit recognition on long-term construction contracts.
C) Depreciation expense.
D) Composition of sales by segment.

AICPA CPA-Financial Exam - 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?

Show Suggested Answer Hide Answer
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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Hana
7 months ago
I disagree, D is crucial for understanding business segments!
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Karan
8 months ago
Wait, are we really discussing D? Seems less relevant.
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Thora
8 months ago
C is a must, can't believe it's even a question!
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Josephine
8 months ago
I think B is also important for transparency.
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Dorethea
8 months ago
Definitely A should be included!
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Alise
9 months ago
The composition of sales by segment seems more like a detailed note rather than a significant accounting policy. I’m leaning towards A being the right answer.
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Charisse
9 months ago
I remember practicing a question similar to this where depreciation expense was mentioned. I think it’s usually included in the summary, but I’m not 100% certain.
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Hubert
9 months ago
I'm not entirely sure about the future minimum lease payments. I feel like that might be more related to financial statements rather than the summary of significant accounting policies.
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Leonie
9 months ago
I think the basis of profit recognition on long-term construction contracts is definitely something that should be disclosed. It seems important for understanding revenue recognition.
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Katlyn
9 months ago
Ugh, I'm struggling with this one. Accounting policy disclosures can be tricky, and I'm not totally sure which of these options are the most relevant. I'll have to think it through step-by-step.
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Michal
9 months ago
Okay, I've got this. The key is to identify which of these items would be considered a significant accounting policy that needs to be disclosed. I'm pretty confident I can narrow this down.
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Paul
9 months ago
Hmm, I'm a bit unsure about this one. The options cover a range of accounting topics, so I'll need to really focus on the specific question being asked about disclosure requirements.
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Amina
9 months ago
This seems like a straightforward accounting policy question. I'll review the options carefully and think through what types of information are typically disclosed in a summary of significant accounting policies.
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Fabiola
9 months ago
I've seen this type of question before, and I believe the answer is option B, "Increment Deployment Version". But I'll double-check to make sure.
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Renea
9 months ago
I'm a bit confused here. Should the Scrum master be gathering the details from the team members or coordinating with the product owner? I'll have to review my Scrum knowledge.
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Loreen
9 months ago
Hmm, I'm a bit unsure about this one. I know confirmation testing and regression testing are important after a defect fix, but I'm not sure which ones should be done next. I'll have to review my notes to be sure.
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Albina
10 months ago
This is a good question to test our understanding of Alibaba Cloud's monitoring services. I'm pretty confident that CloudMonitor is the right choice here, as it's the dedicated service for monitoring infrastructure utilization across Alibaba Cloud resources.
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Lynelle
1 year 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
1 year ago
D? Really? Segment information is interesting, but not as crucial as the other options.
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Ellsworth
1 year ago
D) Composition of sales by segment.
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Margart
1 year ago
C) Depreciation expense.
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Denny
1 year ago
B) Future minimum lease payments in the aggregate and for each of the five succeeding fiscal years.
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Shanice
1 year ago
A) Basis of profit recognition on long-term construction contracts.
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Herminia
1 year ago
I'm going with C. Depreciation expense is a key part of the financial statements.
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Dwight
1 year ago
Which of the following should be disclosed in a summary of significant accounting policies?
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Felice
1 year ago
Which of the following should be disclosed in a summary of significant accounting policies?
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Elsa
1 year ago
Which of the following should be disclosed in a summary of significant accounting policies?
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Ona
1 year ago
B sounds good to me - future minimum lease payments are important information for users to know.
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Sherita
1 year ago
Depreciation expense is also important to disclose, as it impacts the company's financial statements and profitability.
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Clorinda
1 year 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
1 year 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 year 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
1 year ago
Composition of sales by segment can provide valuable information to stakeholders.
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Zachary
1 year ago
Depreciation expense is important to include in the summary of significant accounting policies.
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Belen
1 year ago
I think future minimum lease payments should also be disclosed to give a clear picture.
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Ashlyn
1 year ago
I agree, the basis of profit recognition on long-term construction contracts is crucial.
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Lanie
1 year ago
I think D should be disclosed too, to provide transparency on sales composition.
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Leota
1 year ago
I agree with Johana. B should also be disclosed to show future financial obligations.
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Johana
1 year ago
I think A should be disclosed because it affects the recognition of profit.
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