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:

Monthly Payments

Regular payments made over a period, often referring to loan repayments, lease payments, or subscriptions that are due once per month.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to prepare financial statements.

Long-term Liabilities

Financial obligations of a company due after more than one year, such as bonds payable, long-term loans, and lease obligations.

Bonds Payable

These are long-term debt securities issued by companies to borrow money, with an obligation to pay interest and repay the principal at a future date.