In Accordance with ASC 958,contributions of Services Are Recognized as Increases

question 103

Multiple Choice

In accordance with ASC 958,contributions of services are recognized as increases in unrestricted net assets by a private,not for profit entity if which of the following criteria are satisfied?
I.The services received create or enhance nonfinancial assets.
II.The services require specialized skills,are provided by individuals possessing those skills,and would typically need to be purchased if not provided by donations.
III.The services will be performed within the current fiscal year.

• A) I or II.
• B) I or III.
• C) II or III.
• D) I, II, III.

Understand the fundamental concepts of partnership formation.

Recognize the legal aspects of partnership liabilities and partners' responsibilities.

Grasp the nature of partnership agreements and their impact on partnership operations.

Comprehend the rights and duties of partners within a partnership.

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Definitions:

Controllable Variance

The difference between actual costs and budgeted costs that management has the power to influence or control through decisions and actions.

Variable Factory Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and materials used in the production process.

Controllable Variance

The difference between actual budgeted costs and the controllable costs within a budget period.

Fixed Factory Overhead

Indirect manufacturing costs that remain relatively constant regardless of the level of production, such as rent, depreciation, and salaries of factory supervisors.