Say No to Meth,a Not-For-Profit Entity Devoted to Informing the Public

question 31

Multiple Choice

Say No To Meth,a not-for-profit entity devoted to informing the public about the hazards of methamphetamine,sends out brochures to a large number of doctors,urging that the brochures be placed in the doctors' waiting rooms.The four-page brochure contains a description of the addictive and destructive nature of the drug,but half of the last page contains an appeal for funds,in relatively large type.How should the entity report the $30,000 expense of preparing,printing,and mailing the brochure in its statement of activities?

• A)The entire $30,000 must be reported as a fund-raising expense.
• B)The entire $30,000 must be reported as a program expense.
• C)The $30,000 should be allocated between fund-raising and program expenses,using appropriate cost accounting techniques.
• D)The $30,000 should be reported under the caption "Program and fund-raising expenses."

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Definitions:

Thoracotomy

A surgical procedure involving an incision into the chest wall to access organs in the thoracic cavity.

Anthracosis

A lung condition caused by the inhalation of coal dust, leading to blackening of the lungs, also known as "black lung disease."

Bronchiectasis

A chronic condition where the walls of the bronchi are thickened from inflammation and infection causing permanent enlargement of parts of the airways of the lung.

Hypoxia

A condition in which the body or a region of the body is deprived of adequate oxygen supply.