A Private College Received an Offer from a CPA Who

question 98

Multiple Choice

A private college received an offer from a CPA who is an alumnus to teach a one-semester advanced accounting course at no cost.ASC 958 prescribes that this contribution of service:

• A)need only be disclosed in the footnotes to the financial statements.
• B)be recorded as an asset with an equivalent amount recorded in the unrestricted fund balance.
• C)be recorded as a revenue with an equivalent amount recorded as an expenditure.
• D)need not be recorded if the service is for a period less than one academic year.

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Definitions:

LSD

Short for Lysergic Acid Diethylamide, LSD is a powerful psychedelic drug known for its psychological effects, including altered thinking processes, perceptions, and awareness of surrounding environments.

Percent

A unit of measure that represents one hundredth of a whole, frequently used to describe proportions or comparisons.

Women

Adult human females, often focused on in studies for their unique health, social, and cultural experiences compared to men.

Twelfth Graders

Students in the final year of secondary education, typically aged 17-18 years.