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AICPA Exam CPA-Financial Topic 3 Question 90 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 90
Topic #: 3

[All CPA-Financial Questions]

The following information pertains to Aria Corp. and its divisions for the year ended December 31, 1988:

Aria and all of its divisions are engaged solely in manufacturing operations. Aria has a reportable segment if that segment's revenue exceeds:

A$264,000

B$260,000

C$204,000

D$200,000

Show Suggested Answer

Suggested Answer: B

Choice 'B' is correct. Changes in accounting principle are handled 'retrospectively.' Beginning retained earnings of the earliest year presented is adjusted for the cumulative effect of the change and all prior year financial statements are restated.

by Emerson at Jun 22, 2024, 02:34 AM

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Ming

19 days ago

Wait, does Aria Corp. have a division that makes fortune cookies? Because if so, I'm going with B - $260,000. You know, for the extra fortune-telling power!

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Lai

12 hours ago

User 2: Yeah, I agree. I'll go with D - $200,000.

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Francisca

1 days ago

User 1: I think Aria Corp. is all about manufacturing, no fortune cookies here.

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Leandro

25 days ago

I'm confident D is the right answer, but I'm also curious to know what kind of manufacturing Aria Corp. is into. Maybe they make robots or something?

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Hollis

1 months ago

Haha, I bet the accountants at Aria Corp. are having a field day trying to keep track of all those numbers! D is the way to go.

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Tamekia

16 days ago

Yeah, D makes sense considering the revenue threshold.

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Alishia

17 days ago

User 1: I agree, D is the answer.

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Deeann

20 days ago

I agree, D seems like the most reasonable option.

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Cyndy

1 months ago

Wow, Aria Corp. must be a pretty big company to have divisions with revenue that high! I'm going with D, it just makes the most sense.

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Magdalene

2 months ago

The correct answer is D) $200,000. This is the threshold for a reportable segment based on the information provided.

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Teddy

20 days ago

That makes sense, since the threshold for a reportable segment is $200,000.

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Teddy

28 days ago

I think the answer is D) $200,000.

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Jacquelyne

2 months ago

I see your point, but I still think A) $264,000 makes more sense based on the information provided.

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Pa

2 months ago

I disagree, I believe the answer is C) $204,000.

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Jacquelyne

2 months ago

I think the answer is A) $264,000.

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