Which of the Following Statements Related to the Accounting for Donated

question 46

Multiple Choice

Which of the following statements related to the accounting for donated goods and services for a not-for-profit organization is TRUE?

• A)Recording the value of donated goods and services could result in inflated earnings.
• B)Recording the value of donated goods and services enhances stewardship reporting.
• C)Recording the value of donated goods and services could be useful in evaluating management performance.
• D)Recording the value of donated goods and services is required by the CICA Handbook.

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Definitions:

Beneficiary

An individual or entity entitled to benefits or assets under a legal instrument or arrangement, such as a trust or will.

Legal Title

Refers to the formal right of ownership over property, recognized and protected by law.

Intestacy Laws

State statutes that specify how property will be distributed when a person dies intestate.

State Statutes

Laws that have been enacted by the legislative bodies of state governments.