In Not-For-Profit Accounting, an Acquisition Occurs When One Not-For-Profit Entity

question 25

Multiple Choice

In not-for-profit accounting, an acquisition occurs when one not-for-profit entity obtains:

• A) Significant influence over another not-for-profit entity.
• B) More than 50% of another not-for-profit entity's fixed assets.
• C) The right to collect more than 20% of pledged contributions.
• D) Control over another not-for-profit entity.
• E) None of these answer choices are correct. An acquisition can only occur for profit-oriented entities.