AICPA CPA-Financial Exam - Topic 2 Question 23 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 23
Topic #: 2

On January 2, 1991, Air, Inc. agreed to pay its former president $300,000 under a deferred compensation arrangement. Air should have recorded this expense in 1990 but did not do so. Air's reported income tax expense would have been $70,000 lower in 1990 had it properly accrued this deferred compensation in its December 31,1991, financial statements, Air should adjust the beginning balance of its retained earnings by a:

A$230,000 credit.

B$230,000 debit.

C$300,000 credit.

D$370,000 debit.

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. $230,000 debit.

by Lezlie at May 09, 2022, 06:38 AM

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Dominque

4 months ago

Surprised they missed that in 1990!

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Christiane

4 months ago

Definitely a $230,000 debit, makes sense!

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Ronnie

4 months ago

Wait, how does this affect their tax situation?

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Alayna

4 months ago

I think it's a $300,000 credit, right?

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Oneida

5 months ago

Air should've recorded that in 1990, for sure.

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Jolene

5 months ago

This looks like a tricky one. I'll need to carefully review the vManage configuration options to determine which one automates the certificate signing process.

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Maybelle

5 months ago

I think this question is asking about how dynamic content analysis can improve URL categorization. The key seems to be that it analyzes the actual content of the URL, not just the URL itself.

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Venita

5 months ago

I'm a little confused by the wording of this question. Are they asking about the most common or the most legitimate mechanism? I'll have to read through the options closely to make sure I understand what they're looking for.

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Rusty

5 months ago

Okay, I've got a strategy here. I'll focus on really understanding the customer's business process and how our solution can enhance their capabilities.

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Margret

5 months ago

I read about enabling GARP-based EP Move Detection in a practice question last week. It seemed useful for reducing conflicts, but is it the right choice here?

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