Loss on uncollectible trade receivable recorded in year 1 from a customer that declared bankruptcy in year 2 - provides additional evidence of conditions that existed at balance sheet date.

The CPA Financial Accounting and Reporting (FAR) section covers US GAAP, IFRS, and governmental accounting, focusing on financial statement preparation, balance sheet accounts, and complex transactions.

Key concepts include revenue recognition (ASC 606), leases (ASC 842), business combinations, bonds, inventory, and governmental accounting, with a 50/50 mix of MCQs and simulations.