AICPA CPA-Financial Exam - Topic 3 Question 90 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 90
Topic #: 3

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

Limited Time Offer

25%

Off

Get Premium CPA-Financial Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Ronny

4 months ago

Is it really just $200,000? That feels off.

upvoted 0 times

...

Delisa

5 months ago

Totally agree, $264,000 makes sense for manufacturing.

upvoted 0 times

...

Norah

5 months ago

Wait, $204,000? That seems low for a reportable segment!

upvoted 0 times

...

Andra

5 months ago

I think it should be $260,000, right?

upvoted 0 times

...

Nakisha

5 months ago

The threshold for a reportable segment is $264,000.

upvoted 0 times

...

Tina

6 months ago

I’m really uncertain about this one. I thought it was $204,000, but now I’m second-guessing myself after reviewing the options.

upvoted 0 times

...

Kimberely

6 months ago

I feel like the answer is $264,000 because I recall something about higher thresholds for reportable segments.

upvoted 0 times

...

Eleonora

6 months ago

I practiced a similar question where the threshold was around $200,000, so I’m leaning towards option D, but I could be mixing it up.

upvoted 0 times

...

Ora

6 months ago

I think I remember that a reportable segment needs to exceed a certain revenue threshold, but I’m not sure if it’s $260,000 or $264,000.

upvoted 0 times

...

Kayleigh

6 months ago

I'm a bit confused by the wording of the question. I'll need to re-read it carefully and make sure I understand the requirements before selecting an answer.

upvoted 0 times

...

Tyisha

6 months ago

I've got this! The key is recognizing that Aria has a reportable segment if the revenue exceeds a certain threshold. I just need to pick the right threshold value from the options.

upvoted 0 times

...

Hershel

6 months ago

Okay, let me think this through step-by-step. First I'll identify the division revenues, then I'll compare those to the potential thresholds to see which one matches the criteria.

upvoted 0 times

...

Elly

6 months ago

Hmm, I'm a little unsure about this one. I'll need to carefully review the revenue information for each division and make sure I understand the criteria for a reportable segment.

upvoted 0 times

...

Louvenia

6 months ago

This seems straightforward - I just need to compare the revenue thresholds to the division revenues and determine which one is the correct reportable segment criteria.

upvoted 0 times

...

Lashaunda

6 months ago

Okay, I've got this. The question is asking which 3 services can be used for a register cluster, so I'll select the 3 that seem most relevant.

upvoted 0 times

...

Olga

6 months ago

I'm confident that an acceptable use policy is the right answer here. It allows you to establish clear rules and procedures for BYOD to mitigate potential security issues.

upvoted 0 times

...

Alline

6 months ago

Hmm, I'm a bit confused on the TLOG store setup. I know it's related to high availability, but I'm not sure about the specific configuration requirements. I'll need to review the details on that.

upvoted 0 times

...

Ming

11 months 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!

upvoted 0 times