A Not-For-Profit (NFP) Organization Acting as a Financial Intermediary Receives

question 57

Multiple Choice

A not-for-profit (NFP) organization acting as a financial intermediary receives a contribution. Under the FASB Codification the NFP would be most likely to recognize the contribution as a liability under which of the following situations?

• A) The NFP has variance power.
• B) The NFP is acting as an agent, receiving the contribution on behalf of another organization.
• C) The NFP is financially interrelated with the organization on whose behalf it received the contribution.
• D) The NFP has a 51 percent interest in the organization on whose behalf it received the contribution.

---

Definitions:

Payroll Register

A document that records the payment details of employees, including wages, deductions, and net pay for each pay period.

Payroll Register

A document that summarizes the earnings, deductions, and net pay of all employees for a specific payroll period.

Calendar Year

A one-year period that begins on January 1 and ends on December 31, used as a financial or accounting period.

Gross Pay

The entire sum an employee receives in earnings before any taxes or deductions are subtracted.