Asked by Dominique Handy on Apr 27, 2024

verifed

Verified

Which of the following items would be excluded from "core activities" as defined by the AICPA?

A) recurring nonoperating gains
B) financing costs
C) sales revenue
D) sales commissions

Core Activities

Core activities are the central and essential operations or functions of a business that are directly related to its main purpose and generate the majority of its revenue and profits.

Recurring Nonoperating

A financial term referring to regular income or expenses that arise from activities not related to a company's core operations.

AICPA

Stands for the American Institute of Certified Public Accountants, a professional organization that sets ethical and auditing standards for the accounting profession in the United States.

  • Discovering the function and pieces of the income statement in the framework of financial reporting.
verifed

Verified Answer

KE
Katie EnglishApr 30, 2024
Final Answer :
B
Explanation :
Financing costs would be considered non-core activities and excluded from the definition of core activities as defined by the AICPA. Recurring nonoperating gains may or may not be excluded depending on the specific circumstances, while sales revenue and sales commissions would generally be considered part of core activities.