A Nongovernment, Not-For-Profit Environmental Organization Conducts a Mailing About the Dangers

question 32

Multiple Choice

A nongovernment, not-for-profit environmental organization conducts a mailing about the dangers of global warming. Included in the mailing is a request for donations. How should this activity be reported be in the statement of activities?

• A) Fund-raising expense.
• B) Program expense.
• C) Fund-raising, unless certain criteria are met.
• D) Always allocated between fund-raising and program support.

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Definitions:

Exchange Rates

The rate at which one currency can be exchanged for another currency.

Capital Assets (Net)

The total value of a business's long-term assets, including property, plant, and equipment, net of accumulated depreciation.

Functional Currency

The main currency used by a business entity to conduct its economic activities and financial reporting.

Acquisition Differential

The difference between the cost of an acquisition and the fair value of the net identifiable assets of the acquired entity.