AICPA Exam CPA-Financial Topic 1 Question 77 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 77
Topic #: 1

[All CPA-Financial Questions]

Conceptually, interim financial statements can be described as emphasizing:

ATimeliness over reliability.

BReliability over relevance.

CRelevance over comparability.

DComparability over neutrality.

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. Change in lives of fixed assets is a change in accounting estimate.

by Josphine at Nov 26, 2023, 09:42 PM

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Raymon

28 days ago

I'm going with A. Timeliness is the name of the game when it comes to interim statements. Reliability? Psh, that's for the end-of-year report. Right now, I just need to know how many lattes the CEO bought this quarter.

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Queenie

29 days ago

Haha, D? Comparability over neutrality? What kind of nonsense is that? I think the person who wrote this question must have been sampling the company's interim financials a little too closely.

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Rasheeda

1 months ago

C is the way to go. Relevance trumps all in the world of interim reporting. As long as the information is useful, who cares about comparability? I'm not trying to benchmark my company against the competition here.

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Raelene

1 months ago

I'm going with B. Reliability is key when it comes to financial reporting, even if it takes a bit longer to prepare. Nobody wants to make decisions based on sketchy interim data.

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Nohemi

3 days ago

But don't you think timeliness is also important in making quick decisions?

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Vivan

6 days ago

I agree, reliability is crucial in financial reporting.

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3 months ago

I think interim financial statements should emphasize timeliness over reliability.

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