AICPA Exam CPA-Business Topic 3 Question 104 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 104
Topic #: 3

[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 Adelina at Dec 06, 2024, 08:55 PM

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Lindsey

2 days ago

D, for sure. Developing capital budgets should be the first step to ensure we have the funds to support our capital expenditures.

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Lindsay

15 days ago

B seems like the way to go. Analyzing and evaluating all promising alternatives is crucial before making any decisions.

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Dominga

7 days ago

I agree, it's important to consider all options before moving forward.

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Marget

19 days ago

I agree with Truman, it's important to know what our capital needs are before moving forward.

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Lyndia

19 days ago

I think the answer is C. Identifying capital addition projects and other capital needs is the first logical step in the process.

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Truman

23 days ago

I think we should start by identifying capital addition projects and other capital needs.

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