Which of the Following Volunteer Services Is Most Likely to Be

question 35

Multiple Choice

Which of the following volunteer services is most likely to be reported by a nongovernmental not-for-profit hospital as contribution revenue and an expense?

• A) Community members who plant flowers on the grounds once a year in the spring.
• B) Volunteers in the gift shop who work a few hours a day serving customers.
• C) Nurses from a religious organization who volunteer to assist in the care of critically ill children.
• D) An accountant who is a member of the board of directors.

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Definitions:

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Required Discount Rate

The minimum expected rate of return on an investment, used in the discounting process of present value calculations.

Profitability Index

A financial tool used to determine the desirability of an investment or project by dividing the present value of future cash flows by the initial investment cost.