According to the FASB Codification, Which of the Following Is

question 18

Multiple Choice

According to the FASB Codification, which of the following is a condition that must be met for contributed services to a not-for-profit organization (NFP) to be recorded as both a contribution and as an expense?

• A) The service creates or enhances nonfinancial assets, such as a carpenter renovating a building.
• B) The service requires a specialized skill and is provided by someone who possesses the specialized skill, such as a lawyer preparing contracts.
• C) The service supplements the management function, such as an auditor preparing a program audit, which is not normally done.
• D) All of the given conditions must be met for contributed services to be recognized as a contribution and an expense.

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Definitions:

Desirable Tone

The chosen attitude or emotional expression in communication that is considered appropriate and effective for the situation.

Confident

The state of feeling certain about the truth of something or having firm trust in one’s abilities or qualities.

Positive Emphasis

A communication approach focusing on positive aspects or outcomes rather than negative ones.

Negative Information

Information that may be unfavorable or detrimental to an individual or organization, requiring careful handling when communicated.