AICPA Exam CPA-Financial Topic 1 Question 10 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 10
Topic #: 1

Chester Corp. was a development stage enterprise from its inception on September 1, 1987 to December 31, 1988. The following information was taken from Chester's accounting records for the above period:

For the period September 1, 1987 to December 31, 1988, what amount should Chester report as net loss?

A$ 50,000

B$150,000

C$350,000

D$450,000

Show Suggested Answer

Suggested Answer: D

Choice 'd' is correct. $450,000 net loss for the period Sept. 1, 1987 to DeC. 31, 1988.

Rule: 'Development stage enterprises' present their FS in accordance with GAAP and make additional disclosures such as: cumulative net losses, cumulative deficit, cumulative sales and expenses.

by Louisa at May 07, 2022, 11:38 PM

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