The FASB Requires That Expenses of Voluntary Health and Welfare

question 75

Multiple Choice

The FASB requires that expenses of voluntary health and welfare organizations be reported according to function. Which of the following are FASB required function categories?

• A) Operating and Nonoperating
• B) Program and Supporting Services.
• C) Operating, Investing and Financing.
• D) Capital and Noncapital Related

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Definitions:

Adequate Consideration

Sufficient value or compensation exchanged between parties in a contract, making the agreement legally binding.

Detriment

A state of being harmed or damaged, often used in legal contexts to describe loss or injury.

Adequacy of Consideration

Refers to a legal assessment of whether the consideration (value) given in exchange for a promise or for performance in a contract is fair and reasonable.

Unilateral Contract

A contract where only one party makes a promise or undertakes a performance without requiring a reciprocal agreement from the other party.