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AICPA CPA-Financial Exam - Topic 3 Question 1 Discussion

Actual exam question for AICPA's CPA-Financial exam
Question #: 1
Topic #: 3
[All CPA-Financial Questions]

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?

Show Suggested Answer Hide Answer
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.


by Dottie at May 05, 2022, 07:24 PM

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Jerlene
4 months ago
How does $490,000 even come into play here?
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Ressie
4 months ago
So, the packaging redesign isn't included in the charitable contributions?
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Ona
4 months ago
Wait, are we counting employee contributions too?
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Kara
4 months ago
Definitely $390,000, that makes sense!
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Nelida
5 months ago
Yew Co. donated $250,000 to youth programs and $140,000 to health services.
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Chu
5 months ago
Hmm, this looks like a tricky one. I'll need to carefully read through the options and think about the specific search criteria.
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Alfreda
5 months 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.
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Harris
5 months 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.
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Ashanti
5 months 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!
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