Which of the Following Statements Is Not Correct with Respect

question 83

Multiple Choice

Which of the following statements is not correct with respect to contributions to a private not-for-profit?

• A) Contributions to a not-for-profit are recorded at fair market value at the date the pledge is made.
• B) Contributions of assets other than cash to a not-for-profit are recorded at the donor's basis.
• C) Contributions to a not-for-profit may be restricted as to purpose or time or for plant acquisition.
• D) Revenues, including contributions are considered to be unrestricted unless donor-imposed restrictions apply.

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Definitions:

Repair

The action of fixing or restoring something that is broken or damaged back to its original condition.

Equivalent Annual Cost

A financial analysis tool used to compare the cost effectiveness of two or more alternative investments, taking into account both the initial investment and the annual operating costs.

Discounted Payback

A capital budgeting method that calculates the time required to break even on an investment based on the discounted cash flows.

Profitability Index

A financial tool used to assess the desirability of an investment by dividing the present value of future cash flows by the initial investment cost.