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

question 153

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 following FASB Statement No.5.

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Definitions:

Long-Term Investments

Investments held by a company for more than one year with the intention of yielding financial returns, such as stocks, bonds, or real estate.

Marketable Stocks

Shares that are easily bought or sold in the market due to their high liquidity and the presence of numerous buyers and sellers.

Marketable Bonds

Bonds that can be easily sold in the financial markets because they are highly liquid and attractive to investors.

Semiannually

Occurs twice yearly or every six months interval.