Which of the Following Statements Is True Regarding Documentation Requirements

question 65

Multiple Choice

Which of the following statements is true regarding documentation requirements for charitable contributions?

• A)If the total deduction for all noncash contributions for the year is more than $500,Section A of Form 8283,Noncash Charitable Contributions,must be completed.
• B)A noncash contribution of less than $250 must be supported by a cancelled check,or a receipt,or other written acknowledgement from the charitable organization.
• C)A contribution charged to a credit card is considered a cash contribution for purposes of documentation requirements.
• D)All of the above are true.

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Definitions:

Discount Period

refers to the time frame in which a sales discount is available to a customer, encouraging prompt payment.

Perpetual Inventory Method

An accounting approach that records inventory purchases and sales in real-time through direct changes in inventory and cost of goods sold accounts.

General Journal Entries

Recorded financial transactions that detail the exchange or transfer of value, representing the broader double-entry bookkeeping system.

F.O.B Destination

A shipping term indicating that the seller pays for transportation of the goods to the destination and retains ownership until delivery is completed.