AICPA Exam CPA-Financial Topic 3 Question 104 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 104
Topic #: 3

[All CPA-Financial Questions]

What is the underlying concept that supports the immediate recognition of a contingent loss?

ASubstance over form.

BConsistency.

CMatching.

DConservatism.

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct. Expensing insurance premiums when paid (rather than allocating them to the periods benefited) is a correction of an error in previously presented financial statements.

by Noah at Dec 05, 2024, 01:15 PM

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Dominque

3 hours ago

I think the answer is D) Conservatism.

upvoted 0 times

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