According to the FASB Codification,which of the Following Is a Condition

question 49

Multiple Choice

According to the FASB Codification,which of the following is a condition that must be met for contributed services to a not-for-profit organization (NFP) to be recorded as both a contribution and as an expense?

• A) The service creates or enhances nonfinancial assets, such as a carpenter renovating a building.
• B) The service requires a specialized skill and is provided by someone who possesses the specialized skill, such as a lawyer preparing contracts.
• C) The service supplements the management function, such as an auditor preparing a program audit, which is not normally done.
• D) All of the above must be met for contributed services to be recognized as a contribution and an expense.

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Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Target Market

The target market is a specific group of consumers at which a company aims its products and services, identified by demographic, geographic, or psychographic characteristics.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Inelastic Demand

This economic concept describes a situation where the demand for a product does not significantly change with the price change.