A Good Reason for NNOs to Adopt Fund Accounting Even

question 15

Multiple Choice

A good reason for NNOs to adopt fund accounting even though FASB standards do NOT require it is because:

• A) the capital assets are significant.
• B) the donated services are significant.
• C) the program services are involved with more than one type of revenue.
• D) restrictions are placed by donors in many cases.

---

Definitions:

Product Recalls

The process of requesting the return of a batch or production run of products, typically due to the discovery of safety issues or defects.

Puffing

The act of making exaggerated, subjective statements or claims about a product or service that cannot be objectively verified, often used in sales and advertising.

Reasonable Consumer

A legal standard referring to a hypothetical person who is considered average or typical from the perspective of the consumer population, used in cases related to consumer protection and advertising.

Mislead

To guide someone into a wrong direction or give someone a wrong idea or impression.