Which of the Following Statements Related to the Accounting for Donated

question 30

Multiple Choice

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

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

---

Definitions:

Paralegal Seeking Employment

Refers to a legally trained individual who performs tasks requiring knowledge of the law and legal procedures, in the process of looking for a job.

Adverse Selection

Form of market failure resulting when products of different qualities are sold at a single price because of asymmetric information, so that too much of the low-quality product and too little of the high-quality product are sold.

High Blood Sugar

A condition characterized by an excessively high level of glucose in the blood, commonly associated with diabetes.

Excess Drinking

The consumption of alcohol beyond what is considered moderate or socially acceptable, often leading to adverse health and social effects.