Contributed Services Are Recognized as Revenue for a Private Not-For-Profit

question 162

Multiple Choice

Contributed services are recognized as revenue for a private not-for-profit when the service:

• A) Is related to administration and fund raising activities.
• B) Requires specialized skills, is provided by someone possessing those skills, and typically would be purchased if not provided by donation.
• C) A and B are both required for the service to be recorded as revenue
• D) None of the above, contributed services are not recorded as revenue

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Definitions:

Bond Yields

The amount of return an investor realizes on a bond, calculated as the percentage of the bond's annual interest payments relative to its market price.

Yield To Call

The return a bondholder gets if the bond is held until the call date, which is before the bond's actual maturity date.

Expected Capital Gains Yield

The anticipated rate of return from an investment due to an increase in its market price.

Reinvestment Rate Risk

Occurs when a short-term debt security must be “rolled over.” If interest rates have fallen, the reinvestment of principal will be at a lower rate, with correspondingly lower interest payments and ending value.