AICPA Exam CPA-Financial Topic 2 Question 75 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 75
Topic #: 2

[All CPA-Financial Questions]

Which of the following should be reported as a prior period adjustment?

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. Change in the computation of warranty costs from 3% of sales to 1% of sales is a change in accounting estimate.

by Rozella at Oct 04, 2023, 08:02 PM

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1 days ago

I disagree, I believe it should be Option C.

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3 days ago

I think the answer is Option A.

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