AICPA CPA-Financial Exam - Topic 3 Question 45 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 45
Topic #: 3

The following items were among those that were reported on Lee Co.'s income statement for the year ended December 31, 1989:

The office space is used equally by Lee's sales and accounting departments. What amount of the abovelisted items should be classified as general and administrative expenses in Lee's multiple-step income statement?

A$290,000

B$325,000

C$410,000

D$500,000

Show Suggested Answer

Suggested Answer: A

Note: 1/2 of the office space of $240,000 was used by the sales department, which should be allocated to 'selling expenses' (not general and administrative).

Choice 'a' is correct. $290,000.

by Cecily at May 08, 2022, 04:00 PM

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Barbra

4 months ago

$290,000? That feels way too low for general expenses!

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Dorinda

4 months ago

I thought it was $410,000 at first, but $325,000 could work too.

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Tamie

4 months ago

Wait, are we sure about that? Seems a bit high to me.

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Vicky

4 months ago

Definitely agree with that! $325,000 makes sense.

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Rana

5 months ago

I think it's $325,000 based on the office space allocation.

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Fabiola

5 months ago

On-Demand instances might be the simplest option, but I'm not sure they'll be the most cost-effective for a 24/7 workload like this.

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Wilford

5 months ago

Hmm, I'm a bit unsure about this. I think it might have something to do with defining the context and end-to-end set of activities necessary to establish requirements and deliver new IT services, but I'm not 100% sure.

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Erick

5 months ago

I remember learning that the daily scrum should be kept short and focused. 15 minutes sounds about right to me, but I'll double-check the Scrum Guide just to be sure.

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