Under FASB Standards,which of the Following Contributions Would Not Have

question 7

Multiple Choice

Under FASB standards,which of the following contributions would not have to be reported as an asset on the statement of financial position of a not-for-profit organization?

• A) Land was donated to the Friends of the Forest Society for conversion into a nature trail.
• B) The original courthouse was donated to the Historical Preservation Society for conversion into a museum.
• C) An art collector donated a famous oil painting to a local nongovernmental art museum for display in its exhibit hall.
• D) A valuable coin collection was donated to the Youth for Conservation organization,which the organization plans to sell at current market prices.

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Definitions:

Molding

The process of manufacturing by shaping liquid or pliable raw material using a rigid frame called a mold or matrix.

Customizing

The process of modifying or tailoring products or services to fit specific requirements or preferences of a consumer.

Manufacturing Cost

The total cost incurred by a company to produce goods, including labor, material, and overhead costs.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated in advance based on estimated overhead costs and an allocation base.