Under Current Accounting and Reporting Standards, Nongovernmental Not-For-Profit Organizations Must

question 58

True/False

Under current accounting and reporting standards, nongovernmental not-for-profit organizations must utilize the fund accounting structure set forth in the AICPA Audit and Accounting Guide Not-for-Profit Entities.

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Definitions:

Units-of-production

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces.

Molding Machine

A machine used in manufacturing to shape liquid or pliable raw material using a rigid frame called a mold.

Straight-line Method

A method of calculating depreciation or amortization by evenly spreading the cost over the useful life of the asset.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.