The FASB States That Donated Services Should Be Recorded as Contributions

question 12

True/False

The FASB states that donated services should be recorded as contributions by a not-for-profit organization if they meet the recognition criteria and are material.

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Definitions:

Bootstrapping

A self-starting process that is supposed to proceed without external input, often used to describe startups that grow without major external funding.

Penny Pinching

The act of being very careful with money, often by trying to reduce spending.

Seed Money

Initial funding used to start a business, often provided by angel investors, friends, or family.

Resources

Assets, materials, or other necessities that are available for use or could be used to achieve goals.