Section 4431 of the CICA Handbook Contains a Provision Applicable

question 32

Multiple Choice

Section 4431 of the CICA Handbook contains a provision applicable to not-for-profit organizations which grants an exemption from capitalizing and amortizing all their fixed assets. The exemption is applicable to:

• A) not-for-profit organizations with fewer than ten employees.
• B) not-for-profit organizations that have assets less than $1 million.
• C) not-for-profit organizations that are unincorporated.
• D) not-for-profit organizations whose two-year average annual revenues in their statement of operations are less than $500,000.

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Definitions:

Two-part Tariff

A pricing strategy that consists of a fixed fee plus a variable usage rate, commonly used in utility services and memberships.

Pay-per-view

A type of television or online streaming service where viewers pay a fee to watch a specific program or event.

Usage Fee

A charge imposed for the use of a particular service or facility, often applied to public utilities or amenities.

Two-part Tariff

A pricing strategy that involves a fixed fee plus a variable usage fee, commonly used in services or utilities pricing.