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AICPA Exam CPA-Financial Topic 3 Question 106 Discussion

Actual exam question for AICPA's CPA-Financial exam
Question #: 106
Topic #: 3
[All CPA-Financial Questions]

Which of the following describes how comprehensive income should be reported?

Show Suggested Answer Hide Answer
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 Scarlet at Jan 25, 2025, 08:35 AM

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Una
2 months ago
Option A is the classic 'separate statement' approach, but options C and D give more flexibility. I'd go with C since it covers the most ground.
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Jose
8 days ago
I see your point, but I still think option C offers the best of both worlds.
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Cherry
9 days ago
I prefer option A, keeping it simple with a separate statement.
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Rikki
1 months ago
I think option D could also work, as long as it's disclosed within a statement of stockholders' equity.
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Lino
1 months ago
I agree, option C seems like the most flexible choice.
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Quinn
2 months ago
Haha, imagine if they said comprehensive income shouldn't be reported at all - that would be like a black hole in the financial statements! Good thing option B isn't the right answer.
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Leota
1 months ago
Haha, yeah, that would be chaotic! Good thing there are clear guidelines for reporting comprehensive income.
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Gilbert
1 months ago
C) May be reported in a separate statement, in a combined statement of income and comprehensive income, or within a statement of stockholders' equity.
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An
1 months ago
A) Must be reported in a separate statement, as part of a complete set of financial statements.
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Desiree
3 months ago
I'm leaning towards option D. Separate statements of comprehensive income don't seem to be allowed, so the combined statement or disclosure within the equity statement are the way to go.
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Velda
1 months ago
I'm not sure, but I think option A might be too restrictive since it requires a separate statement for comprehensive income.
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Lashawnda
1 months ago
I think option C could also work, as it allows for reporting in a separate statement or within the statement of stockholders' equity.
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Lajuana
1 months ago
I agree, option D seems to be the most appropriate way to report comprehensive income.
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Twanna
3 months ago
Option C sounds like the most comprehensive approach. Reporting comprehensive income in a separate statement, a combined statement, or within the statement of stockholders' equity seems to cover all the bases.
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Tyra
2 months ago
Having the option to report comprehensive income in different statements gives stakeholders a more complete view of the company's financial health.
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Hershel
2 months ago
It's important to have flexibility in how comprehensive income is reported to ensure transparency.
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Lera
2 months ago
I think reporting comprehensive income in multiple ways provides a clearer picture of the company's financial performance.
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Eloisa
2 months ago
I agree, option C does seem like the most comprehensive approach.
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Rodrigo
3 months ago
I disagree, I believe comprehensive income can be reported in a combined statement of income and comprehensive income.
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Paulina
3 months ago
I agree with Fatima, it makes sense to have it as part of a complete set of financial statements.
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Fatima
4 months ago
I think comprehensive income should be reported in a separate statement.
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