AICPA Released Questions from the

2014 Uniform CPA Exam

- Released May 2015 -

FINANCIAL ACCOUNTING & REPORTING

Uniform CPA Examination Questions and unofficial Answers, copyright by American Institute of Certified Public
Accountants, Inc. All rights reserved. Reprinted by Roger CPA Review with permission.

2015 AICPA Released Financial Accounting & Reporting Questions

Please note: This document contains all the question information released by the AICPA. The table below each question contains
placement data for the question within the exam template from which the question comes. The Key value is the correct letter
answer for each preceding question. For best study results, the Roger CPA Review team adds comprehensive solution rationales
when integrating new questions to your course materials.

MULTPLE CHOICE - DIFFICULT

Clear Co.'s trial balance has the following selected accounts:

Cash (includes $10,000 in bond-sinking fund
for long-term bond payable)

$50,000

Accounts receivable

20,000

Allowance for doubtful accounts

5,000

Deposits received from customers

3,000

Merchandise inventory

7,000

Unearned rent

1,000

Investment in trading securities

2,000

What amount should Clear report as total current assets in its balance sheet?
A.
B.
C.
D.

$64,000
$67,000
$72,000
$74,000

Attribute
Item ID
Area
Group
Topic
Key

Value
45939
001
003
001
A

2015 AICPA Released Questions FAR

Martin Co. had net income of $70,000 during the year. Depreciation expense was $10,000. The
following information is available:
Accounts receivable increase

$20,000

Equipment gain on sale increase

10,000

Nontrade notes payable increase

50,000

Prepaid insurance increase

40,000

Accounts payable increase

30,000

What amount should Martin report as net cash provided by operating activities in its statement
of cash flows for the year?
A.
B.
C.
D.

$0
$ 40,000
$ 50,000
$100,000

Attribute
Item ID
Area
Group
Topic
Key

Value
42987
001
003
005
B

Which of the following should be disclosed in a summary of significant accounting policies?

A.
B.
C.
D.

Basis of consolidation.
Concentration of credit risk of financial instruments.
Composition of plant assets.
Adequacy of pension plan assets in relation to vested benefits.

Attribute
Item ID
Area
Group
Topic
Key

Value
40643
001
003
006
A

2015 AICPA Released Questions FAR

Each of the following events is required to be reported to the United States Securities and
Exchange Commission on Form 8-K, except
A.
B.
C.
D.

The creation of an obligation under an off-balance sheet arrangement of a registrant.

The unregistered sale of equity securities.
A change in a registrant's certifying accountant.
The quarterly results of operations and financial condition of a registrant.

Attribute
Item ID
Area
Group
Topic
Key

Value
51161
001
004
000
D

Garcel, Inc. held unfinished inventory at a cost of $85,000 with a sales value of $125,000. The
inventory will cost $10,500 to complete. The normal profit margin is 30% of sales. The
replacement cost of the inventory was $75,000. What amount should Garcel report as inventory
on balance sheet?
A.
B.
C.
D.

$114,500
$ 85,000
$ 77,000
$ 75,000

Attribute
Item ID
Area
Group
Topic
Key

Value
44561
002
003
000
C

2015 AICPA Released Questions FAR

Sea Manufacturing Corp. is constructing a new factory building. During the current calendar
year, Sea made the following payments to the construction company:
January 2
December 31

$1,000,000
1,000,000

Sea has an 8%, three-year construction loan of $3,000,000. What is the amount of interest
costs that Sea may capitalize during the current year?
A.
B.
C.
D.

$0
$ 80,000
$160,000
$240,000

Attribute
Item ID
Area
Group
Topic
Key

Value
52983
002
004
000
B

Under IFRS, which of the following statements about intangible assets is correct?
A. Internally generated goodwill cannot be recognized as an asset.
B. Intangible assets within a class may be measured differently using either the cost model
or the revaluation model.
C. Research and development costs are capitalized as incurred.
D. Intangible assets with indefinite lives must be amortized annually.

Attribute
Item ID
Area
Group
Topic
Key

Value
53823
002
006
000
A

2015 AICPA Released Questions FAR

A note payable was issued in payment for services received. The services had a fair value less
than the face amount of the note payable. The note payable has no stated interest rate. How
should the note payable be presented in the statement of financial position?
A. At the face amount.
B. At the face amount with a separate deferred asset for the discount calculated at the
imputed interest rate.
C. At the face amount with a separate deferred credit for the discount calculated at the
imputed interest rate.
D. At the face amount minus a discount calculated at the imputed interest rate.

Attribute
Item ID
Area
Group
Topic
Key

Value
50025
002
009
001
D

Which of the following statements is correct regarding valuation allowances in accounting for
income taxes?
A. The effect of a change in the opening balance of a valuation allowance that results from
a change of circumstances ordinarily is included in income from operations.
B. Both deferred tax assets and deferred tax liabilities can be reduced by a valuation
allowance.
C. Only negative evidence, not positive evidence, should be considered when determining
whether a valuation allowance is needed.
D. A valuation allowance is necessary when the realistic probability standard of evidence is
satisfied.

Attribute
Item ID
Area
Group
Topic
Key

Value
47985
002
014
000
A

2015 AICPA Released Questions FAR

A company issues $1,500,000 of par bonds at 98 on January 1, year 1, with a maturity date of
December 31, year 30. Bond issue costs are $90,000, and the stated interest rate of the bonds
is 6%. Interest is paid semiannually on January 1 and July 1. Ten years after the issue date, the
entire issue was called at 102 and canceled. The company uses the straight-line method of
amortization for bond discounts and issue costs, and the result of this method is not materially
different from the effective interest method. The company should classify what amount as the
loss on extinguishment of debt at the time the bonds are called?
A.
B.
C.
D.

$ 30,000
$ 50,000
$ 90,000
$110,000

Attribute
Item ID
Area
Group
Topic
Key

Value
49785
002
009
004
D

On day 1, Clothes Co., sells clothing to Link Corp. for $40,000. Clothes ships the clothing on
day 1 and Link is obligated to pay Clothes within six months. Link is given 12 months to return
any of the clothing for a refund if they experience low demand. Link is also given 18 months to
exchange any clothing due to low demand. At the time of sale, Clothes cannot reasonably
estimate returns, but estimates $5,000 in exchanged goods. Clothes should recognize revenue
for the aforementioned transaction
A.
B.
C.
D.

On the day of the sale.

Six months after the date of sale.
12 months after the date of sale.
18 months after the date of sale.

Attribute
Item ID
Area
Group
Topic
Key

Value
48943
002
011
000
C

2015 AICPA Released Questions FAR

At the beginning of year 1, a company amends its defined benefit pension plan for an additional
$500,000 in prior service cost. The amendment covers employees with a 10-year average
remaining service life. At the end of year 1, what is the net entry to accumulated other
comprehensive income, ignoring income tax effects?
A.
B.
C.
D.

A $450,000 debit.
A $500,000 debit.
A $550,000 credit.
A $450,000 credit.

Attribute
Item ID
Area
Group
Topic
Key

Value
48105
002
013
004
A

A company recorded a decommissioning liability and recognized the amount recorded as part of
the cost of the related property. After the property was fully depreciated, the decommissioning
liability was reviewed and adjusted. How should this change in the decommissioning liability be
recognized under IFRS?
A. The change in the liability is recognized in other comprehensive income.
B. The change in the liability is recognized in profit or loss.
C. The change in the liability is recognized as a change in the carrying amount of the
property if the liability increases but is otherwise recognized in profit or loss.
D. The change in the decommissioning liability is not recognized until it is settled.

Attribute
Item ID
Area
Group
Topic
Key

Value
53561
003
002
000
B

2015 AICPA Released Questions FAR

A company incurred the following costs to complete a business combination in the current year:
Issuing debt securities

$30,000

Registering debt securities

25,000

Legal fees

10,000

Due diligence costs

1,000

What amount should be reported as current-year expenses, not subject to amortization?

A.
B.
C.
D.

$ 1,000
$11,000
$36,000
$66,000

Attribute
Item ID
Area
Group
Topic
Key

Value
56149
003
003
000
B

Based on the stock transactions below, what is the weighted average number of shares
outstanding as of December 31, year 1, that should be used in the calculation of basic earnings
per share in financial statements issued on March 1, year 2?
Date
Transactions
January 1, year 1
Beginning balance 100,000
April 1, year 1
Issued 30,000 shares for cash
June 1, year 1
50% stock dividend
February 15, year 2
2 for 1 stock split
March 15, year 2
Issued 40,000 shares for cash
A.
B.
C.
D.

147,500
183,750
295,000
367,500

Attribute
Item ID
Area
Group
Topic
Key
8

Value
43903
003
006
000
D

2015 AICPA Released Questions FAR

Which of the following phrases best describes a Level 1 input for measuring the fair value of an
asset or liability?
A.
B.
C.
D.

Inputs for the asset or liability based on the reporting entity's internal data.
Quoted prices for similar assets or liabilities in active markets.
Inputs that are principally derived from or corroborated by observable market data.
Unadjusted quoted prices for identical assets or liabilities in active markets.

Attribute
Item ID
Area
Group
Topic
Key

Value
48237
003
009
000
D

On June 1, year 1, ABC Co. issued a 200,000 euro purchase order for equipment to be supplied
by a German company. ABC's functional currency is the U.S. dollar. The equipment was
delivered to ABC on November 1, year 1, and ABC recorded a payable due to the German
company. ABC paid for the equipment on January 31, year 2. The following are the exchange
rates in effect:
June 1, year 1

1 euro = 1.40 U.S. dollars

November 1, year 1

1 euro = 1.50 U.S. dollars

December 31, year 1

1 euro = 1.35 U.S. dollars

January 31, year 2

1 euro = 1.30 U.S. dollars

Under IFRS, what is the foreign currency gain or loss that ABC should record for the year ended
December 31, year 1?
A. A loss of $30,000.
B. A loss of $20,000.
C. A gain of $10,000.
D. A gain of $30,000.
Attribute
Item ID
Area
Group
Topic
Key

Value
53439
003
011
000
D

2015 AICPA Released Questions FAR

A company leases a machine from Leasing, Inc. on January 1, year 1. The lease terms include
a $100,000 annual payment beginning January 1, year 1. The machine's fair value is $500,000
and the residual value is estimated at $20,000. The company guarantees the residual value.
The useful life of the machine is six years, and the lease term is five years. The implicit rate of
interest is 6% and is known by the company. The following present value factors are provided:
Five years
Six years
Present value of $1 at 6%
0.7473
0.7050
Present value of an annuity due at 6%
4.4651
5.2124
Present value of an ordinary annuity at 6%
4.2124
4.9173
What is the value of the machine in the company's balance sheet at lease inception?
A. $446,510
B. $461,456
C. $520,000
D. $535,340
Attribute
Item ID
Area
Group
Topic
Key

Value
48111
003
014
000
B

Isle Co. owned a copy machine that cost $5,000 and had accumulated depreciation of $2,000.
Isle exchanged the copy machine for a computer that cost $4,000. Isle's future cash flows are
not expected to change significantly as a result of the exchange. What amount of gain or loss
should Isle report and at what amount should it record the asset?
A.
B.
C.
D.

No gain or loss in the income statement; $3,000 asset in the balance sheet.
No gain or loss in the income statement; $4,000 asset in the balance sheet.
$1,000 gain in the income statement; $3,000 asset in the balance sheet.
$1,000 gain in the income statement; $4,000 asset in the balance sheet.

Attribute
Item ID
Area
Group
Topic
Key

10

Value
46375
003
016
000
A

2015 AICPA Released Questions FAR

On January 1, year 1, a company capitalized $100,000 of costs for software that is to be sold.
The company amortizes the software costs on a straight-line basis over five years. The carrying
value of the software costs on January 1, year 3, was $60,000. As of December 31, year 3, the
estimated future gross revenue to be generated from the sale of the software is $23,000, and
the estimated future cost of disposing of the software is $8,000. What amount should the
company expense related to the software costs for the year ended December 31, year 3?
A.
B.
C.
D.

$18,400
$20,000
$37,000
$45,000

Attribute
Item ID
Area
Group
Topic
Key

Value
49919
003
021
000
D

Which of the following is a required part of a local government's management's discussion and
analysis (MD&A) as part of its financial statements?
A. The MD&A should be presented with other required supplementary information.
B. The MD&A should compare current-year results to the prior year with emphasis on the
current year.
C. The MD&A should include an analysis for each fund.
D. The MD&A should present condensed financial information from the fund financial
statements.

Attribute
Item ID
Area
Group
Topic
Key

11

Value
43203
004
002
006
B

2015 AICPA Released Questions FAR

A city government reported a $9,000 increase in net position in the motor pool internal service
fund, a $12,000 increase in net position in the water enterprise fund, and a $7,000 increase in
the employee pension fund. The motor pool internal service fund provides service primarily to
the police department. What amount should the city report as the change in net position for
business-type activities in its statement of activities?
A.
B.
C.
D.

$ 9,000
$12,000
$21,000
$28,000

Attribute
Item ID
Area
Group
Topic
Key

Value
55843
004
002
001
B

Land and other real estate held as investments by endowments in a government's permanent
fund should be reported at
A.
B.
C.
D.

Historical cost.
The lower of cost and net realizable value.
Fair value.
Fair value less costs of disposal.

Attribute
Item ID
Area
Group
Topic
Key

12

Value
44569
004
002
002
C

2015 AICPA Released Questions FAR

A statement of financial position for a nongovernmental not-for-profit organization reports
amounts for which of the following classes of net assets?
A.
B.
C.
D.

Current.
Long-term.
Permanently restricted.
Temporarily unrestricted.

Attribute
Item ID
Area
Group
Topic
Key

Value
53081
005
001
001
C

A nongovernmental not-for-profit college has a portfolio of bond investments that had an original
cost of $2,000,000. The college's board of trustees voted to hold the principal of this fund intact
in perpetuity and designated the earnings to reimburse faculty for travel to academic
conferences. During the year, interest of $50,000 was earned in cash. The fair value of the
bonds was $1,980,000. What amount should the college report as permanently restricted net
assets at year end?
A.
B.
C.
D.

$0
$1,980,000
$2,000,000
$2,030,000

Attribute
Item ID
Area
Group
Topic
Key

13

Value
43899
005
002
002
A

2015 AICPA Released Questions FAR

MULTIPLE CHOICE - MODERATE
The FASB's due process for setting accounting standards includes which of the following procedures?
A. The FASB can seek information about accounting and reporting issues by holding public forums,
usually based on an exposure draft.
B. The FASB delegates topics to the Financial Accounting Foundation for research and reporting.
C. The FASB's Emerging Issues Task Force ratifies amendments to the Accounting Standards
Codification.
D. The FASB obtains approval from the International Accounting Standards Board in setting its
agenda.
Attribute
Item ID
Area
Group
Topic
Key

Value
51371
001
001
002
A

Which of the following items should be shown as a component of comprehensive income?

A.
B.
C.
D.

Dividend paid to a shareholder.

Foreign-currency translation adjustment.
Additional capital contribution.
Deferred revenue.

Attribute
Item ID
Area
Group
Topic
Key

14

Value
43975
001
003
003
B

2015 AICPA Released Questions FAR

Dunbarn Co. had the following activities during the year:
Purchase of inventory

$120,000

Purchase of equipment

80,000

Purchase of available-for-sale securities

60,000

Purchase of treasury stock

70,000

Issuance of common stock

150,000

What amount should Dunbarn report as cash provided (used) by investing activities in its statement of
cash flows for the year?
A.
B.
C.
D.

$(120,000)
$(140,000)
$(210,000)
$ 150,000

Attribute
Item ID
Area
Group
Topic
Key

Value
42973
001
003
005
B

Savor Co. had $100,000 in accrual basis pretax income for the year. At year end, accounts receivable
had increased by $10,000 and accounts payable had decreased by $6,000 from their prior year-end
balances. Under the cash basis of accounting, what amount of pretax income should Savor report for the
year?
A.
B.
C.
D.

$ 84,000
$ 96,000
$104,000
$116,000

Attribute
Item ID
Area
Group
Topic
Key

15

Value
41063
001
006
000
A

2015 AICPA Released Questions FAR

A firm's ending inventory balance was overstated by $1,000. Which of the following statements is correct
according to a periodic inventory system?
The retained earnings were overstated by $1,000.
The cost of goods sold was overstated by $1,000.
The cost of goods available for sale was overstated by $1,000.
The gross margin was understated by $1,000.
Attribute
Item ID
Area
Group
Topic
Key

Value
44861
002
003
000
A

Quick Co. acquired the following assets from a liquidating competitor for a $200,000 lump-sum purchase
price:

Inventory
Land
Building

Competitors carrying
amount

Fair value

$ 70,000
40,000
110,000

$ 50,000
50,000
150,000

$220,000

$250,000

What amount should Quick report as the cost of the building?

A.
B.
C.
D.

$100,000
$120,000
$150,000
$200,000

Attribute
Item ID
Area
Group
Topic
Key

16

Value
43583
002
004
000
B

2015 AICPA Released Questions FAR

At the beginning of year 2, a company invested $40,000 in a marketable equity security. At that time the
security was appropriately classified as an available-for-sale security. At the end of year 2, the security
had a fair value of $28,500. The change in fair value is deemed temporary. How should this change in fair
value be reported in the financial statements?
A.
B.
C.
D.

As a realized loss of $11,500 as part of net income.

As a realized loss of $11,500 as part of other comprehensive income.
As an unrealized loss of $11,500 as part of net income.
As an unrealized loss of $11,500 as part of other comprehensive income.

Attribute
Item ID
Area
Group
Topic
Key

Value
49911
002
005
002
D

Anchor Co. is experiencing financial difficulties. Anchor negotiated a settlement of $100,000 in debt owed
to Bowden, Inc. in exchange for Anchor's gross receivables of $100,000. The receivables have an
allowance for uncollectible accounts of $25,000. The impact of this transaction on Anchor's net income is
a $25,000
A.
B.
C.
D.

Increase in bad debt expense.

Gain on restructuring of payables.
Loss on restructuring of payables.
Decrease in bad debt expense.

Attribute
Item ID
Area
Group
Topic
Key

17

Value
49903
002
009
005
B

2015 AICPA Released Questions FAR

Aldrich Co. distributes cash dividends to its shareholders during the current year. The dividends are
declared on March 9 and are payable to shareholders as of the date of record, which is April 15. The
dividends are actually paid on May 19. At which of the following dates would the dividends become a
liability to Aldrich?
A.
B.
C.
D.

March 9
April 15
May 19
December 31

Attribute
Item ID
Area
Group
Topic
Key

Value
52755
002
010
000
A

In February, Colt Corp. sold merchandise to Sink Co. for $10,000. Colt is using the cost recovery method
to account for this sale, which had cost of goods sold of $2,500. Colt received the following payments
from Sink during the year:
Date
June

Amount
$1,000

August

1,500

October

200

December

700
$3,400

What amounts of gross profit should Colt recognize in its June 30 and December 31 income statements?

A.
B.
C.
D.
Attribute
Item ID
Area
Group
Topic
Key

18

June 30
$0
$0
$1,000
$1,000

December 31
$0
$900
$2,400
$3,400
Value
41369
002
011
000
B

2015 AICPA Released Questions FAR

Harmony Co. has a single-employer defined benefit pension plan. Harmony should report a liability
related to the plan equal to which of the following amounts?
A.
B.
C.
D.

The unfunded projected benefit obligation.

The accumulated benefit obligation.
The projected benefit obligation.
The unfunded vested benefit obligation.

Attribute
Item ID
Area
Group
Topic
Key

Value
47229
002
013
004
A

Which of the following circumstances would result in a deferred tax asset for the current year?
A.
B.
C.
D.

Expenses that are recognized in financial income this year and deductible next year.
Expenses that are deductible this year and recognized in financial income next year.
Revenues that are recognized in financial income this year and taxable next year.
Revenues that are recognized in financial income this year but are not subject to taxation.

Attribute
Item ID
Area
Group
Topic
Key

19

Value
45531
002
014
000
A

2015 AICPA Released Questions FAR

Which of the following examples would require restatement of prior years' financial statements?
A. A calculation change of warranty obligations based on updated claim information for the prior
year.
B. A change from the income tax basis of accounting to the accrual basis.
C. An insurance premium that was due in the prior year but that lapsed because the policy was not
paid.
D. An intangible asset with a remaining estimated amortization period of two years, which is
determined to be obsolete.
Attribute
Item ID
Area
Group
Topic
Key

Value
55473
003
001
000
B

The per-share amount must be reported on the face of a public company's income statement for which of
the following items?
A.
B.
C.
D.

Income from continuing operations.

Preferred stock dividend.
U.S. Treasury stock.
Compensation effect of fair value on stock options.

Attribute
Item ID
Area
Group
Topic
Key

20

Value
43957
003
006
000
A

2015 AICPA Released Questions FAR

A foreign subsidiary of a U.S. parent company should measure its assets, liabilities and operations using
A.
B.
C.
D.

The subsidiary's local currency.

The subsidiary's functional currency.
The U.S. dollar.
The best available spot rate.

Attribute
Item ID
Area
Group
Topic
Key

Value
41599
003
011
000
B

Which of the following is a criterion for classifying a lease as a capital lease by a lessee?
A. The lease term is equal to 75% or more of the estimated economic life of the leased property.
B. The present value of the minimum lease payments is 75% or more of the fair value of the leased
property.
C. The lease agreement contains an option to purchase the leased property at its fair value at the
end of the lease term.
D. The lease agreement requires that title of the leased property remains with the lessor at the end
of the lease term.
Attribute
Item ID
Area
Group
Topic
Key

21

Value
52381
003
014
000
A

2015 AICPA Released Questions FAR

Jensen performed legal services to assist Balm Co. in accomplishing its initial organization. Jensen
accepted 1,000 shares of $5 par common stock in Balm as payment for his services. The Balm shares
were not yet publicly traded, but they had a book value of $4 per share. Jensen provided 48 hours of
service, which is normally billed at $125 per hour. By what amount should the common stock account
increase?
A.
B.
C.
D.

$1,000
$4,000
$5,000
$6,000

Attribute
Item ID
Area
Group
Topic
Key

Value
45375
003
016
000
C

The following information relates to two projects performed by Miley Co. during the year for laboratory
research aimed at discovering new knowledge:
Likelihood that effort will result in
Project Costs

future benefits

I. $100,000

Probable

II. $ 50,000

Reasonably possible

What should Miley report as research and development expenses in its income statement for the year?
A. $0
B. $ 50,000
C. $100,000
D. $150,000
Attribute
Item ID
Area
Group
Topic
Key

22

Value
42069
003
018
000
D

2015 AICPA Released Questions FAR

A company began developing computer software to be sold as a separate product on January 1, year 1.
During the planning, coding, and testing phases, the company incurred $1,300,000 of costs. On June 30,
year 1, the product was determined to be technologically feasible. The company began producing product
masters of the software and incurred an additional $750,000 of costs from July 1, year 1, through
September 30, year 1. After the software was available for release on October 1, year 1, the company
incurred an additional $275,000 of costs relating to maintenance and customer support. What amount of
software-related costs should be capitalized?
A.
B.
C.
D.

$275,000
$750,000
$1,300,000
$2,050,000

Attribute
Item ID
Area
Group
Topic
Key

Value
49667
003
021
000
B

Which basis of accounting is required for a city's government-wide financial statements?

A.
B.
C.
D.

Cash.
Modified cash.
Modified accrual.
Accrual.

Attribute
Item ID
Area
Group
Topic
Key

23

Value
41249
004
001
001
D

2015 AICPA Released Questions FAR

A city government would report each of the following categories in its government-wide statement of net
position except
A.
B.
C.
D.

Governmental activities.
Business-type activities.
Fiduciary activities.
Component units.

Attribute
Item ID
Area
Group
Topic
Key

Value
55745
004
002
001
C

Which of the following funds of a local government would report transfers to other funds as an other
financing use?
A.
B.
C.
D.

Enterprise.
Internal service.
Pension trust.
General.

Attribute
Item ID
Area
Group
Topic
Key

24

Value
42315
004
004
005
D

2015 AICPA Released Questions FAR

A storm damaged the roof of a nongovernmental, not-for-profit organization's building. A professional
roofer repaired the roof at no charge. How should the roof repairs be recognized in the statement of
activities?
A.
B.
C.
D.

As an increase in expenses and an increase in contributions from donated services.

As an increase in the building account and an increase in unrestricted net assets.
As an increase in fixed assets and an increase in contributions from donated services.
No recognition is required in the financial statements, but a note disclosure is required.

Attribute
Item ID
Area
Group
Topic
Key

Value
43041
005
002
001
A

A donor gives $10,000 to a nongovernmental, not-for-profit organization with instructions that it must be
used to fund the organizations general operating expenses during the following fiscal year. The donation
will increase the organization's
A.
B.
C.
D.

Unrestricted net assets.

Temporarily restricted net assets.
Restricted net assets.
Restricted retained earnings.

Attribute
Item ID
Area
Group
Topic
Key

25

Value
44095
005
002
002
B

2015 AICPA Released Questions FAR

A nongovernmental, not-for-profit organization provided the following data in regard to $500,000 of
donations received during the year:
Purchase of investments to be held in perpetuity at
the donor's request

$100,000

Future repairs to the organization's building and

equipment at the donor's request

250,000

General operations at the discretion of the board of

directors

100,000

Specific program services as indicated by the donor

50,000

In order to properly reflect receipt of the donations, net assets should increase in the amount of
A.
B.
C.
D.

$400,000 unrestricted and $100,000 permanently restricted.

$150,000 unrestricted, $250,000 temporarily restricted, and $100,000 permanently restricted.
$100,000 unrestricted, $300,000 temporarily restricted, and $100,000 permanently restricted.
$100,000 unrestricted and $400,000 permanently restricted.

Attribute
Item ID
Area
Group
Topic
Key

26

Value
44541
005
002
003
C

2015 AICPA Released Questions FAR

TASK-BASED SIMULATIONS (TBS)
Task 7123_01

27

2015 AICPA Released Questions FAR

Task 7123_01
Selection List Column A

28

2015 AICPA Released Questions FAR

Task 5017_01

29

2015 AICPA Released Questions FAR

Task 4428_01
Key 1

30

2015 AICPA Released Questions FAR

Task 4428_01
Key2

31