Which of the Following Statements Is Correct Regarding Reporting of Special

question 49

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 an NFP.
• 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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