Which Statement Below Is Not Correct

question 5

Multiple Choice

Which statement below is not correct?

• A) The accounting period in which pledged revenues are recognized is dependent on donor specifications.
• B) The permanently restricted section of a nonprofit organization's net assets is set aside by donor restrictions.
• C) A contributed asset is recognized as revenue by a nonprofit organization.
• D) Depreciation expense is not recognized by nonprofit organizations.
• E) Nonprofit organizations issue a statement of activities.

Identify the principles of accrual accounting, including the recognition of revenues and expenses.

Recognize the definitions and treatment of prepaid expenses, accrued expenses, and deferred revenues.

Relate the effect of proper and improper adjustments on financial statements’ accuracy and completeness.

Understand the concepts of book value, depreciation, and the adjustment for depreciation.