Which of the Following Is Not Correct with Respect Collections

question 107

Multiple Choice

Which of the following is not correct with respect collections held by private not-for-profit organizations?

• A) If a collection is sold, the proceeds must be reinvested in another collection.
• B) If recorded, collections are recorded as permanently restricted assets.
• C) If collections are not recorded, note disclosures are required.
• D) All of the above are correct.

---

Definitions:

Selling Price

The amount of money for which a product or service is offered for sale to customers.

Accrued Sales Revenues

Revenues earned during a period but not yet received in cash or recorded at the statement date.

Unearned Sales Revenues

Money received by a company for products or services yet to be delivered or performed, considered a liability until earned.

Cash Collected

Revenue that has been received by a company from its various business activities, such as sales or services.