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PrepSmarter has over 2,400 questions for CPA Financial Accounting and Reporting(FAR). PrepSmarter releases questions for your proficiency level, so you don't waste time studying what you already know.

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Question of the day

May 25 | #342070310

The City of New Hope Rotary Club, a private, not‐for‐profit organization, recently ended a fund drive that raised $500,000 to be used as a scholarship fund.

The $500,000 is to be used to create an endowment that will be invested and retained in perpetuity and the earnings used to provide college scholarships to outstanding local high school graduates selected by the Rotary Club. The City has agreed to manage the investment and disbursement of these monies on behalf of the Rotary Club.

The City should account for the $500,000 corpus of the endowment in a(n):


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