Which of the Following Statements Is Correct Regarding Reporting of Special

question 21

Multiple Choice

Which of the following statements is correct regarding reporting of special events and related direct costs under current FASB standards?

• A) Special events and related direct costs must be reported separately at their gross amounts if they relate to the ongoing major operations of a not-for-profit.
• B) Special events revenues are to be reported at gross amounts, even if direct costs are of a peripheral or incidental nature.
• C) With few exceptions special events revenues are reported net of related direct costs.
• D) Expenses of promoting and conducting special events should be netted directly against special events revenue.

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Definitions:

Cause Marketing

A partnership between a for-profit business and a non-profit organization for mutual benefit, leveraging the marketing effort to support a social cause or charity.

Person Marketing

Use of efforts designed to attract the attention, interest, and preference of a target market toward a person.

Organization Marketing

Marketing strategy that influences consumers to accept the goals of, receive the services of, or contribute in some way to an organization.

Place Marketing

Attempt to attract people to a particular area, such as a city, state, or nation.