AICPA Exam CPA-Financial Topic 3 Question 101 Discussion

Actual exam question for AICPA's CPA Financial Accounting and Reporting exam

Question #: 101
Topic #: 3

[All CPA Financial Accounting and Reporting Questions]

Advertising costs may be accrued or deferred to provide an appropriate expense in each period for:

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. Yes - Yes.

Advertising costs may be accrued or deferred to provide an appropriate expense in each period for both 'interim' and 'year-end' financial reporting.

by Brandon at Sep 15, 2024, 05:34 PM

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Octavio

5 days ago

I'm not sure, but I think it might be Option C based on the revenue recognition principle.

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Marcelle

11 days ago

I believe it's Option B because of the matching principle.

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Tamra

20 days ago

This question is a piece of cake! Everyone knows that advertising costs should be deferred to align with the periods they benefit. Option B all the way!

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Dorothy

23 days ago

I agree with Tamekia. Deferring advertising costs to match the corresponding revenue is a common accounting practice.

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Mabel

11 days ago

I think it's B) Option B

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Gussie

14 days ago

A) Option A

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Roxanne

23 days ago

I think the answer is Option A.

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Tamekia

26 days ago

Option B seems like the correct answer here. Advertising costs are often deferred to match the revenue generated by the advertising.

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Gracia

10 days ago

Yes, that makes sense. It helps to accurately match expenses with the revenue they generate.

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Alana

13 days ago

I agree, Option B is the correct answer. Advertising costs are usually deferred to match the revenue.

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