When an Acquisition Occurs in Not-For-Profit Accounting, Recognition of Goodwill

question 32

Multiple Choice

When an acquisition occurs in not-for-profit accounting, recognition of goodwill depends on:

• A) Whether control has been achieved by the acquiring not-for-profit entity.
• B) Whether the acquired not-for-profit entity has the ability to generate significant amounts of earned revenue or whether it generates mostly contribution and investment revenue in the future.
• C) Whether the acquired not-for-profit entity has the ability to generate significant amounts of both earned revenues and contribution revenues in the future.
• D) Whether the acquired not-for-profit entity has a history of generating significant revenues of any type.
• E) None of these. Goodwill can only be recognized in an acquisition of a for-profit entity.

Know about employment-at-will doctrine, permissible reasons for termination, and the exceptions to the doctrine.

Understand the privacy rights of employees in the workplace and the limitations of those rights concerning employer monitoring.

Familiarize with the compliance requirements under the Electronic Communications Privacy Act (ECPA) for monitoring electronic communications.

Understand the basic concepts and types of securities including stocks, bonds, debentures, and warrants.

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Definitions:

Psychological Dimension

pertains to aspects of an individual’s mental processes and characteristics.

Polychromic Activity

The preference for being involved in two or more tasks or events at the same time.

Situation Effects

Refers to how the immediate context or environment influences an individual's behavior, perceptions, and responses.

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The lack of opportunity, resources, or means to travel and explore different places, leading to social and cultural disadvantages.