Which of the Following Statements Related to Accounting for Donated

question 35

Multiple Choice

Which of the following statements related to 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.

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Definitions:

Indefinite Period

A duration without a specified end date, often used in contracts or agreements to denote an ongoing arrangement.

Periodic Tenancy

The tenancy that exists when the landlordand tenant agree that rent will be paid in regular successive intervals until notice to terminate is given but do not agree on a specific duration of the lease. A typical periodic tenancy is atenancy from month to month.

Month-To-Month Lease

A rental agreement that renews each month automatically until either the tenant or landlord provides notice to terminate.

Duty To Mitigate

The legal obligation to make reasonable efforts to minimize the damage caused by a breach of contract or other wrongful act.