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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Sherill

29 days ago

I'm just hoping the answer isn't 'All of the above' - that would really throw me for a loop!

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Ocie

1 months ago

Consistency is key, people! If you're not consistent with your accounting practices, how can you expect to recognize those losses properly?

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Rory

18 days ago

A) Substance over form.

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Virgina

1 months ago

Substance over form, all the way! Who cares about the technicalities when you've got the big picture in mind?

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Chara

1 months ago

Matching seems like the obvious choice here. You gotta match those losses with the right time period, you know?

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Colene

8 days ago

C) Matching.

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Delmy

16 days ago

C) Matching.

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Kristin

16 days ago

B) Consistency.

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Hillary

17 days ago

B) Consistency.

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Hillary

19 days ago

A) Substance over form.

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Raul

19 days ago

A) Substance over form.

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Darci

2 months ago

Conservatism is the way to go! It's the only option that makes sense for recognizing contingent losses.

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Leonora

2 months ago

I think substance over form is also important in this context.

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Desire

2 months ago

I agree, conservatism is definitely the best option for recognizing contingent losses.

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Dominque

2 months ago

Hmm, that makes sense too. Both answers could be valid depending on the context.

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Catina

2 months ago

I disagree, I believe it's A) Substance over form.

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Dominque

2 months ago

I think the answer is D) Conservatism.

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