A Voluntary Health and Welfare Organization Developed and Printed Informational

question 48

Multiple Choice

A voluntary health and welfare organization developed and printed informational materials which were intended to both educate the public about how its resources are used to help people in need and to also appeal to the public for much needed support.In this situation,the cost of the informational materials should be

• A) accounted for as fund-raising expense.
• B) allocated to expenses for program services.
• C) allocated between expenses for program services and fund-raising expense.
• D) accounted for as management and general expense.

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Definitions:

Performed

Carried out or executed a task or function.

Prepaid

Refers to expenses that have been paid in advance of their due date and are recorded as assets until they are actually incurred.

Annual Rent

The total amount paid or to be paid for the use of a property or space for one year.

Property Tax

A levy imposed by a government on a property owner, based on the value of the property.