AICPA Exam CPA-Business Topic 3 Question 106 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 106
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 Zena at Jan 24, 2025, 05:59 PM

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Phil

3 minutes ago

I think developing capital budgets (D) should come first, as it helps in setting clear financial goals.

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Talia

10 days ago

I disagree, I believe we should start by analyzing and evaluating all promising alternatives (B).

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Maia

14 days ago

This question is a real 'capital' idea! I'm leaning towards C - gotta start with the projects themselves, right?

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Aretha

18 days ago

D, of course! Developing the capital budget is the foundation of the whole process. Everything else follows from that.

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Ezekiel

7 days ago

I agree, without a solid capital budget in place, it would be difficult to move forward with analyzing and evaluating alternatives.

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Glynda

14 days ago

D, of course! Developing the capital budget is the foundation of the whole process. Everything else follows from that.

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Shawnee

26 days ago

B makes the most sense to me. Evaluating all the alternatives is crucial before deciding on anything.

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Naomi

30 days ago

I think C is the most logical starting point. You need to identify the projects first before analyzing them or developing budgets.

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Hollis

13 days ago

I think analyzing and evaluating all promising alternatives is important too, to make sure you are choosing the best option.

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Carry

20 days ago

I agree, identifying the projects is crucial before moving forward.

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Leoma

1 months ago

I think the most logical sequence is to begin with identifying capital addition projects and other capital needs (C).

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