A Nongovernment Not-For-Profit Organization Received Donated Services from a Local

question 27

Multiple Choice

A nongovernment not-for-profit organization received donated services from a local volunteer. The volunteer works as a receptionist for the organization. The market value of service is $5,000. How should this activity be reported be in the statement of activities?

• A) Not be reported.
• B) Unrestricted support, $5,000.
• C) Restricted support, $5,000.
• D) Both unrestricted support and program expense, $5,000.

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Definitions:

Business Activities

Various actions undertaken by a company as part of its operation, including investing, financing, and operating activities.

Revenues

The income received by a business from its normal business operations, often from the sale of goods or services.

Transposition

An error in which the order of the digits is changed, such as writing $542 as $452 or $524.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check for errors in the double-entry system.