AICPA Exam CPA-Business Topic 3 Question 96 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 96
Topic #: 3

[All CPA-Business Questions]

In planning and controlling capital expenditures, the most logical sequence is to begin with:

AAnalyzing capital addition proposals.

BAnalyzing and evaluating all promising alternatives.

CIdentifying capital addition projects and other capital needs.

DDeveloping capital budgets.

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct. The most logical sequence in planning and controlling capital expenditures is to begin with identifying capital addition projects and other capital needs.

Choice 'a' is incorrect. Analyzing capital addition proposals omits other capital needs.

Choice 'b' is incorrect. Analyzing and evaluating all promising alternatives is beyond the scope of planning and controlling capital expenditures.

Choice 'd' is incorrect. Developing capital budgets is the same as planning and controlling capital expenditures.

by Boris at Sep 07, 2024, 11:24 PM

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Tawna

2 months ago

I'm going to have to go with C. It's the logical starting point, and the other options are just a waste of time if you don't know what you're working with.

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Chau

3 months ago

This is a tricky one, but I'd go with C. You can't analyze proposals or develop budgets without first knowing what projects are on the table.

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Gerardo

1 months ago

Once you know the capital needs, then you can start analyzing and evaluating the alternatives.

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Tenesha

2 months ago

I agree, without identifying the projects, you can't move forward with the other steps.

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Leonora

2 months ago

I think C makes sense, you need to know what projects are needed first.

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Mitzie

3 months ago

I see your point, Tomas. But I still think analyzing capital addition proposals should be the starting point to ensure we are making informed decisions.

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Tomas

3 months ago

I believe developing capital budgets should come first, as it helps in setting the financial framework for the capital addition projects.

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Sheron

3 months ago

Definitely D. Developing capital budgets is the foundation for effective capital expenditure management. Everything else flows from that.

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Kanisha

2 months ago

Finally, we can analyze capital addition proposals to make informed decisions.

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Domitila

2 months ago

After that, we can analyze and evaluate all promising alternatives.

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Elza

2 months ago

Once the budgets are in place, we can then move on to identifying capital addition projects.

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Thersa

2 months ago

I agree, developing capital budgets is crucial for effective planning.

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Velda

3 months ago

B seems like the best choice to me. Analyzing and evaluating all promising alternatives is crucial before making any decisions.

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Britt

3 months ago

I think the correct answer is C. Identifying capital addition projects and other capital needs is the logical starting point for capital expenditure planning.

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Brinda

2 months ago

Once we have a clear understanding of our capital needs, we can then move on to analyzing and evaluating alternatives.

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Laurena

3 months ago

I agree, identifying capital addition projects and other capital needs is crucial for planning.

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Casie

3 months ago

I agree with Alease. It makes sense to first identify the capital needs before moving on to analyzing and evaluating alternatives.

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Alease

3 months ago

I think the most logical sequence is to begin with identifying capital addition projects and other capital needs.

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