Exam FAR Topic 1 Question 92 Discussion

Actual exam question for AICPA's FAR exam
Question #: 92
Topic #: 1
Which of the following should be disclosed in a summary of significant accounting policies?

Suggested Answer: A Vote an answer

Choice "a" is correct. The summary of significant accounting policies should disclose policies. The only
policy in this question is the "basis" of profit recognition on long-term construction contracts.
The other disclosures are accounting details and would be disclosed in other footnotes, but not in the
summary of significant accounting policies.
Choice "b" is incorrect. The future minimum lease payments should be disclosed, but not in the summary
of significant accounting policies.
Choice "c" is incorrect. Depreciation expense should certainly be disclosed, but not in the summary of
significant accounting policies.
Choice "d" is incorrect. The composition of sales by segment should be disclosed, but not in the summary
of significant accounting policies.

by Tyrone at Nov 06, 2026, 03:44 PM

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