Which of the Following Statements Is False with Respect to Private

question 101

Multiple Choice

Which of the following statements is false with respect to private not-for-profit organizations?

• A) Exchange transactions should be recorded on the accrual basis of accounting where the revenues are recognized when earned.
• B) An intention to give should be recorded as revenue when the intention is communicated to the not-for-profit.
• C) In certain situations, contributed services should be recognized as revenue.
• D) FASB statement 124 requires that investments in equity securities with readily determinable values be reported at fair market value.

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Definitions:

Shopping Product

Goods that a consumer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style.

Convenience Product

A consumer item that is widely available and purchased frequently with minimal effort.

Unsought Product

A type of product that consumers typically do not think of buying until a need arises or they are made aware of it through advertising.

Convenience Products

Items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort.