If a Private Not-For-Profit Fails to Comply with Donor Restriction

question 139

True/False

If a private not-for-profit fails to comply with donor restriction on contributions received,the organization must accrue and disclose a contingent liability.

---

Definitions:

Target Selling Price

The price at which a company aims to sell its product to achieve its financial goals.

Long Term

Refers to assets, liabilities, or investments that are expected to be held or have effects for a period longer than one year.

Normal Selling Price

Refers to the standard price at which a good or service is typically sold under normal market conditions.

Excess Capacity

Refers to a scenario where a company is operating below its maximum production capacity and can increase output without incurring significant additional costs.