If a Not-For-Profit Organization That Usually Has Annual Revenues Well

question 9

Multiple Choice

If a not-for-profit organization that usually has annual revenues well below $500,000 subsequently earns revenues significantly higher than $500,000,how must it report its Capital Assets?

• A)It must capitalize and amortize retroactively.
• B)It must continue following the same policy.
• C)It must disclose any change in policy in a note to its financial statements.
• D)It must capitalize,but not amortize,retroactively.

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Definitions:

Deans Teaching

A situation where deans, who are senior academic officials in universities, engage directly in teaching courses, usually in their field of expertise.

Charismatic Authority

Authority based in the perception of remarkable personal qualities in a leader.

Traditional Authority

A form of leadership where power is legitimized by longstanding custom, tradition, or religious beliefs.

Legal-Rational Authority

Authority based in laws, rules, and procedures, not in the heredity or personality of any individual leader.