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:

Government

The governing body of a nation, state, or community, responsible for creating and enforcing laws and managing public services and resources.

Wagner Act

Also known as the National Labor Relations Act, it's a foundational statute of US labor law which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Employer

An individual or organization that hires and pays people to perform work or provide services.

Union Representative

An individual elected or appointed to represent union members in discussions, negotiations, or disputes with the employer.