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:

Homologous Chromosomes

Pairs of chromosomes in a diploid organism that are similar in shape, size, and genetic content, one inherited from each parent.

Atoms

The simplest units of all matter.

Element

A pure chemical substance consisting of one type of atom, distinguished by its atomic number.

Cell Membrane

The semi-permeable membrane surrounding the cytoplasm of a cell, responsible for controlling the movement of substances in and out of the cell.