A Not-For-Profit Organization Published a Monthly Magazine That Had 15,000

question 13

Multiple Choice

A not-for-profit organization published a monthly magazine that had 15,000 subscribers on January 1,2011.The number of subscribers increased steadily throughout the year and at December 31,2011,there were 16,200 subscribers.The annual magazine subscription cost was $10 on January 1,2011 and was increased to $12 for new members on April 1,2011.Subscriptions are paid in full at the beginning of the member term.An auditor should expect that the revenue from subscriptions for the year ended December 31,2011,would be approximately

• A) $179,400.
• B) $171,600.
• C) $164,400.
• D) $163,800.

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Definitions:

Causation

The act or process whereby one event, process, or state (a cause) leads to the production of another event, process, or state (an effect).

Positive Economic Statement

A statement that can be proved or disproved by reference to facts.

Normative Economic Statement

A subjective statement that expresses an opinion or a value judgment about what ought to be, rather than what is.

Can Be Verified

Indicates that a certain piece of information, claim, or data can be checked and confirmed for accuracy or truthfulness.