Which of the Following Statements Is Not a True Statement

question 53

Multiple Choice

Which of the following statements is not a true statement about reporting of financially related not-for-profit entities?

• A)If an NPO has a controlling interest in a for-profit entity,it should consolidate that entity's financial information with its own.
• B)If an NPO has a joint agreement with another NPO to provide transportation for clients of the other organization,it should consolidate that entity's financial information with its own.
• C)If an NPO has an economic interest in another entity but not control,it should disclose that in the notes to the financial statements.
• D)If an NPO has significant influence over a for-profit entity,it should use the equity method to report that investment on its financial statement.

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Definitions:

Roanoke Colony

The Roanoke Colony, also known as the Lost Colony, was an early attempt by the English to establish a settlement in North America on Roanoke Island in what is now North Carolina, which mysteriously disappeared.

Freeman Status

Historically, the designation of individuals in society who possessed full citizenship rights, often distinguished from slaves or serfs.

Landowning Church Members

Members of a church community who also own land, historically signifying a higher social and economic status within that community.

Indentured Servants

Individuals who agreed to work for a certain number of years in exchange for passage to the New World, shelter, and sustenance, essentially a labor system used in colonial America.