Discuss AICPA CPA-Financial Exam Topic 3 Question 1

In Yew Co.'s 1992 annual report, Yew described its social awareness expenditures during the year as follows:

"The Company contributed $250,000 in cash to youth and educational programs. The Company also gave $140,000 to health and human-service organizations, of which $80,000 was contributed by employees through payroll deductions. In addition, consistent with the Company's commitment to the environment, the Company spent $100,000 to redesign product packaging."

What amount of the above should be included in Yew's income statement as charitable contributions expense?

A$310,000

B$390,000

C$410,000

D$490,000

Suggested Answer: A

Choice "a" is correct. Charitable contributions include amounts the company gave to recognized charities. This includes:

Note: Of the $140,000, employees gave $80,000, and the company $60,000. Redesigning packaging is not a contribution to a charity.

Choice "b" is incorrect. The company gave only $60,000 of the $140,000. Employees gave $80,000.

Choice "c" is incorrect. Redesigning packaging is not a contribution to a charity.

Choice "d" is incorrect. The company gave only $60,000 of the $140,000. Employees gave $80,000.

Redesigning packaging is not a contribution to a charity.

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9 comments · newest first

Jerlene 11 months ago

How does $490,000 even come into play here?

Ressie 12 months ago

So, the packaging redesign isn't included in the charitable contributions?

Ona 12 months ago

Wait, are we counting employee contributions too?

Kara 12 months ago

Definitely $390,000, that makes sense!

Nelida 1 year ago

Yew Co. donated $250,000 to youth programs and $140,000 to health services.

Chu 1 year ago

Hmm, this looks like a tricky one. I'll need to carefully read through the options and think about the specific search criteria.

Alfreda 1 year ago

Hmm, I'm a bit confused by the wording here. The passage talks about "complex compositions" and "long periods of inactivity" - does that mean the State Repository pattern is only used in certain scenarios, or is it always a core part of the Enterprise Service Bus pattern? I'll have to think this through carefully.

Harris 1 year ago

I'm pretty confident I know the right answer here. The Cisco UCS VIC 1280 has 8 10G ports, which should be able to fully utilize the bandwidth of the 2208XP I/O module.

Ashanti 1 year ago

I think the key here is to test the application with the peripheral to ensure it's handling it correctly. But it's also a good idea to test the peripheral on its own to make sure it's working properly before integrating it with the app. Better to be thorough!

AICPA CPA-Financial Exam - Topic 3 Question 1 Discussion