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AICPA Exam CPA-Financial Topic 3 Question 104 Discussion

Actual exam question for AICPA's CPA-Financial exam
Question #: 104
Topic #: 3
[All CPA-Financial Questions]

What is the underlying concept that supports the immediate recognition of a contingent loss?

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Suggested Answer: C

Choice 'c' is correct. Expensing insurance premiums when paid (rather than allocating them to the periods benefited) is a correction of an error in previously presented financial statements.


by Noah at Dec 05, 2024, 01:15 PM

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Sherill
13 days ago
I'm just hoping the answer isn't 'All of the above' - that would really throw me for a loop!
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Ocie
16 days ago
Consistency is key, people! If you're not consistent with your accounting practices, how can you expect to recognize those losses properly?
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Rory
2 days ago
A) Substance over form.
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Virgina
22 days ago
Substance over form, all the way! Who cares about the technicalities when you've got the big picture in mind?
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Chara
24 days ago
Matching seems like the obvious choice here. You gotta match those losses with the right time period, you know?
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Hillary
1 days ago
B) Consistency.
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Hillary
3 days ago
A) Substance over form.
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Raul
3 days ago
A) Substance over form.
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Darci
2 months ago
Conservatism is the way to go! It's the only option that makes sense for recognizing contingent losses.
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Leonora
1 months ago
I think substance over form is also important in this context.
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Desire
1 months ago
I agree, conservatism is definitely the best option for recognizing contingent losses.
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Dominque
2 months ago
Hmm, that makes sense too. Both answers could be valid depending on the context.
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Catina
2 months ago
I disagree, I believe it's A) Substance over form.
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Dominque
2 months ago
I think the answer is D) Conservatism.
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