If a Not-For-Profit Organization That Has Had Annual Revenues Above

question 14

Multiple Choice

If a not-for-profit organization that has had annual revenues above $500,000 for a number of years, subsequently has revenues (for two years or more) significantly lower than $500,000, how must it report its Capital Assets?

• A) It may choose to expense future capital assets at the date of their acquisition.
• B) It must continue to capitalize and amortize its capital assets.
• C) It may choose to capitalize but not amortize future capital asset additions.
• D)It must derecognize capital assets recognized in past periods.

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Definitions:

Schema

According to Piaget, a hypothetical mental structure that permits the classification and organization of new information.

Retrograde Amnesia

A memory disorder where an individual is unable to recall information that was learned or experienced before a specific event or point in time.

Infantile Amnesia

A psychological phenomenon where an individual is unable to recall events from early childhood.

Retrospective Memory

The ability to remember events that have occurred in the past.