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AICPA CPA-Financial Exam - Topic 3 Question 50 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 50
Topic #: 3

[All CPA-Financial Questions]

FASB's conceptual framework explains both financial and physical capital maintenance concepts. Which capital maintenance concept is applied to currently reported net income, and which is applied to comprehensive income?

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct. Financial capital - Financial capital.

Financial capital maintenance is considered to be an element of both 'currently reported net income' and 'comprehensive income.' This was a rare instance in which this type of information was asked on the exam.

by Herminia at May 09, 2022, 02:02 PM

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Viola

4 months ago

Just to clarify, net income = financial, comprehensive income = physical.

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Robt

4 months ago

Wait, really? I always thought it was the other way around!

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Carma

4 months ago

I thought comprehensive income was about physical capital maintenance?

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Keena

4 months ago

Totally agree, that’s how it works!

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Benedict

5 months ago

Net income uses the financial capital maintenance concept.

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Cammy

5 months ago

Okay, I've got this. The Junction object is the way to go here. It will let us create the many-to-many relationship we need.

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Sheron

5 months ago

I think the answer is C. Full overwrite protection seems like the safest option to minimize the risk of data loss.

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Maurine

5 months ago

This question looks straightforward, I think I can handle it.

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Tegan

5 months ago

For some reason, "allow RTSP" rings a bell, but I can't pinpoint exactly how it influences multicast streaming in a wireless setup.

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