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.

---

Definitions:

Expected Rate

The anticipated yield or return on an investment, loan, or other financial products over a specific period.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much the values differ from the mean.

Risk-Free Asset

An investment with a guaranteed return and no chance of default, often used as a benchmark for the risk level of other investments.

Standard Deviation

A statistical measure that quantifies the amount of variability or dispersion of a set of data points or distribution from the mean.