Which of the Following Statements Is FALSE

question 53

Multiple Choice

Which of the following statements is FALSE?

• A)Not-for-profit organizations may follow IFRS (Part I)or Part III of the CICA handbook.
• B)All not-for-profit organizations should apply similar accounting treatments to like transactions when the needs of the users in the private and public sector are aligned.
• C)Not-for-profit revenue recognition criteria mirror those of profit-oriented entities except for contributions.
• D)A not-for-profit organization may not disaggregate its financial statements into funds based on legal, contractual or voluntary actions of the entity.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adjusting the beginning inventory for purchases and sales during the period.

Materials

The raw items or supplies used in the manufacturing of a product or in the operation of a business.

Equivalent Unit

A measure used in process costing that converts partially completed units into a number of fully completed units.

Process Costing System

A method of costing used for homogeneous products that are continuously produced, assigning costs to units of output on the basis of direct materials, labor, and manufacturing overhead.