AICPA Exam CPA-Financial Topic 1 Question 92 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 92
Topic #: 1

[All CPA-Financial Questions]

Which of the following should be disclosed in a summary of significant accounting policies?

ABasis of profit recognition on long-term construction contracts.

BFuture minimum lease payments in the aggregate and for each of the five succeeding fiscal years.

CDepreciation expense.

DComposition of sales by segment.

Show Suggested Answer

Suggested Answer: B

Choice 'B' is correct. If comparative FS are issued, restate prior year's FS. If comparative FS are not issued, restate prior year-end's retained earnings account by 'adjusting' (net of tax) the opening balance of the current retained earnings statement.

by Sheridan at Jul 10, 2024, 12:49 AM

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Johana

7 days ago

I think A should be disclosed because it affects the recognition of profit.

upvoted 0 times

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