AICPA Exam CPA-Financial Topic 3 Question 50 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 50
Topic #: 3

FASB's conceptual framework explains both financial and physical capital maintenance concepts. Which capital maintenance concept is applied to currently reported net income, and which is applied to comprehensive income?

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct. Financial capital - Financial capital.

Financial capital maintenance is considered to be an element of both 'currently reported net income' and 'comprehensive income.' This was a rare instance in which this type of information was asked on the exam.

by Herminia at May 09, 2022, 02:02 PM

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