AICPA CPA-Financial Exam - Topic 2 Question 2 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 2
Topic #: 2

[All CPA-Financial Questions]

According to the FASB conceptual framework, which of the following relates to both relevance and reliability?

AComparability.

BFeedback value.

CVerifiability.

DTimeliness.

Show Suggested Answer

Suggested Answer: A

Choice "a" is correct. Comparability and consistency are secondary qualities of both relevance and reliability. SFAC 2 para. 111-122

Choice "b" is incorrect. Feedback value is a key characteristic of relevance only.

Choice "c" is incorrect. Verifiability is a key characteristic of reliability only.

Choice "d" is incorrect. Timeliness is a key characteristic of relevance only.

by Lorrie at May 08, 2022, 06:52 AM

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Dean

8 months ago

Feedback value is also important, but I lean towards C.

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Raul

9 months ago

Wait, I thought relevance and reliability were separate?

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Annalee

9 months ago

Not so sure about that, could be A too.

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Sunshine

9 months ago

Totally agree, C makes the most sense!

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Veda

9 months ago

I think it's C, verifiability.

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Sabina

9 months ago

I'm a bit confused by the wording of the options, I'll need to read them carefully to make sure I understand the differences.

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Barbra

9 months ago

This looks like a straightforward permissions issue. I'd start by checking the dashboard sharing settings to ensure all users have the necessary access.

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Ricarda

10 months ago

Okay, I've got this. The service reports are used as the basis for making management decisions and taking corrective actions, so the answer is B.

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