A Not-For-Profit Organization Is Not Required to Capitalize and Amortize

question 31

Multiple Choice

A not-for-profit organization is not required to capitalize and amortize its capital assets if the organization ________.

• A)has assets that total less than $500,000
• B)has a two-year average annual gross consolidated revenues of less than $500,000
• C)has an annual change to net assets of less than $500,000
• D)has less than 10 full-time employees

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Definitions:

Soft Drink Dispensing

The process or equipment used for serving soft drinks, typically seen in restaurants, convenience stores, or vending machines.

Marginal Costs

The augmentation in total expenditures resulting from the production of an additional unit of a product or service.

Law of Diminishing

Refers to the Law of Diminishing Returns, which states that continuing to increase one input, while holding others constant, will eventually result in smaller and smaller additions to output.

Stolen Goods

Items that have been illegally taken from their rightful owner, typically sold in underground markets.