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AICPA Exam CPA-Financial Topic 1 Question 10 Discussion
Actual exam question for
AICPA's
CPA-Financial exam
Question #: 10
Topic #: 1
[All CPA-Financial Questions]
Topic #: 1
Chester Corp. was a development stage enterprise from its inception on September 1, 1987 to December 31, 1988. The following information was taken from Chester's accounting records for the above period:
For the period September 1, 1987 to December 31, 1988, what amount should Chester report as net loss?
Suggested Answer:
D
Choice 'd' is correct. $450,000 net loss for the period Sept. 1, 1987 to DeC. 31, 1988.
Rule: 'Development stage enterprises' present their FS in accordance with GAAP and make additional disclosures such as: cumulative net losses, cumulative deficit, cumulative sales and expenses.
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