Which of the Following Is a Condition That Must Be

question 16

Multiple Choice

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 above must be met for contributed services to be recognized as a contribution and an expense.

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Definitions:

Nonprofit Organization

An organization that operates for the collective, public, or social benefit, reinvesting any surplus revenues in the mission of the organization rather than distributing them as profit or dividends.

Legislation

A system of laws suggested or enacted by a governmental body.

Different Levels

A phrase indicating the presence of varying degrees, stages, or positions within a hierarchical or systematic structure.

Social Welfare Nonprofits

Organizations that aim to provide services, support, and resources to improve the well-being of individuals and communities, especially the disadvantaged.