Baseball for All (BFA)is a Not-For-Profit Organization That Runs Baseball

question 4

Essay

Baseball for All (BFA)is a not-for-profit organization that runs baseball tournaments and clinics for all ages. It also buys equipment needed at the tournaments. It receives government funding from the municipality, and tournament and clinic fees are paid by participants. Generally, annual revenues have been $350,000. This year, BFA received a special grant of $150,000 to buy new equipment. Equipment in the amount of $180,000 was purchased. The equipment is expected to last five years.
Required:
Discuss the various methods that BFA can use to record the purchase of the equipment allowed under the CICA Handbook-Part III and prepare the appropriate journal entries. As part of your explanation, explain the differences between the expenditure basis and expense basis of reporting.

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Definitions:

Futures Position

A contractual agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another.

Portfolio's Beta

A measure of the volatility, or systemic risk, of a portfolio in comparison to the market as a whole.

S&P500 Value

Refers to a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, focusing on their value aspects.