Not-For-Profit Organizations Basically Follow the Same Criteria as Profit-Oriented Companies

question 30

True/False

Not-for-profit organizations basically follow the same criteria as profit-oriented companies with respect to the recognition and measurement of tangible capital assets and intangibles.

---

Definitions:

Financial Reporting

Generating documents that communicate a company's economic situation to its leadership, shareholders, and regulatory agencies.

External Decision Makers

Individuals or organizations outside of a company (e.g., investors, creditors, regulators) who use the company’s financial information to make decisions about engaging with the company.

Common Stock

Represents ownership shares in a corporation, giving shareholders the right to vote on corporate matters and to receive dividends.

Additional Paid-in Capital

The amount of money that shareholders have invested in a company in excess of the nominal or par value of the shares.