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.

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Definitions:

At The Money

The option’s exercise price and the price of the underlying asset are equal.

Out Of The Money

Out of the money describes an option where exercise would result in a negative cash flow. Out-of-the-money options are therefore never exercised.

In The Money

Describes an option whose exercise would produce a positive cash flow. Out of the money describes an option where exercise would result in a negative cash flow.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on fundamentals, without regard to market value.