AICPA Exam CPA-Business Topic 2 Question 88 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 88
Topic #: 2

[All CPA-Business Questions]

In planning and controlling capital expenditures, the most logical sequence is to begin with:

AAnalyzing capital addition proposals.

BAnalyzing and evaluating all promising alternatives.

CIdentifying capital addition projects and other capital needs.

DDeveloping capital budgets.

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct. The most logical sequence in planning and controlling capital expenditures is to begin with identifying capital addition projects and other capital needs.

Choice 'a' is incorrect. Analyzing capital addition proposals omits other capital needs.

Choice 'b' is incorrect. Analyzing and evaluating all promising alternatives is beyond the scope of planning and controlling capital expenditures.

Choice 'd' is incorrect. Developing capital budgets is the same as planning and controlling capital expenditures.

by Laticia at May 22, 2024, 11:27 AM

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Edwin

5 months ago

C) is the way to go. You can't build a house without a blueprint, and you can't budget for capital expenditures without knowing what projects are on the table.

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Angella

6 months ago

This question is a real capital idea! Get it? Capital? Haha, I crack myself up.

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Antione

5 months ago

D) Developing capital budgets.

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Adelina

5 months ago

C) Identifying capital addition projects and other capital needs.

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Leslee

5 months ago

A) Analyzing capital addition proposals.

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Jaleesa

6 months ago

D) Developing capital budgets is the end goal, so it makes sense to begin there. You need to know how much you can spend before you can plan anything else.

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Mabel

5 months ago

C) Identifying capital addition projects and other capital needs.

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Charlette

5 months ago

A) Analyzing capital addition proposals.

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Vesta

5 months ago

D) Developing capital budgets.

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Lynelle

5 months ago

C) Identifying capital addition projects and other capital needs.

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Tammara

5 months ago

C) Identifying capital addition projects and other capital needs.

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Demetra

5 months ago

A) Analyzing capital addition proposals.

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Lashandra

6 months ago

B) Analyzing and evaluating all promising alternatives is crucial. You don't want to jump the gun and just go with the first option that comes up.

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Dana

6 months ago

C) Identifying capital addition projects and other capital needs seems like the logical starting point to me. You can't analyze or budget for anything until you've identified the needs first.

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