Which Statement Below Is Not Correct for Financial Statements of Not-For-Profit

question 59

Multiple Choice

Which statement below is not correct for financial statements of not-for-profit entities?

• A) Pledged contributions are recognized in the accounting period in which pledged by donors.
• B) A not-for-profit entity's Statement of Financial Position includes a section specifically for net assets.
• C) Contributed assets are recognized by a not-for-profit entity as public support contribution revenue.
• D) Depreciation expense is not recognized by not-for-profit entities.
• E) Not-for-profit entities issue a Statement of Activities.

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Definitions:

Transform Faults

Boundaries between tectonic plates where the motion is predominantly horizontal, leading to earthquakes but not creating volcanoes.

Gulf of Mexico

A large ocean basin near the southeastern coast of North America, bounded by the United States, Mexico, and Cuba, known for its rich biodiversity and significant oil reserves.

Narrow Ocean

A relatively thin and elongated body of oceanic water situated between more substantial land masses.

Narrow Ocean

Refers specifically to the relatively thinner and smaller expanses of ocean, often found between landmasses.