Section 4433 Contains a Compromise Provision Applicable to Small NFPOs

question 24

Multiple Choice

Section 4433 contains a compromise provision applicable to small NFPOs. Which of the following statements pertaining to a small NFPO is false?

• A) A small NFPOs average of annual revenues recognized in the statement of operations for the current and preceding period is less than $500,000.
• B) The small NFPO is exempt from having to record donated capital assets at fair value.
• C) A small NFPO is exempt from having to capitalize and amortize tangible capital assets.
• D) A small NFPO can choose to expense a capital asset when it is acquired.

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Definitions:

Unrealistic Assumptions

Hypothetical conditions in models or theories that do not necessarily reflect real-life complexities, used to simplify analysis.

Economic Problems

Economic Problems refer to the various challenges that countries face in allocating scarce resources to meet the desires and needs of their populations.

Bureau of Labor Statistics

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Major Employer

A business or organization that provides a significant number of jobs within a community or economy, often influencing labor market conditions.