Contributed Services Are Recognized as Revenue for a Private Not-For-Profit

question 162

Multiple Choice

Contributed services are recognized as revenue for a private not-for-profit when the service:

• A) Is related to administration and fund raising activities.
• B) Requires specialized skills, is provided by someone possessing those skills, and typically would be purchased if not provided by donation.
• C) A and B are both required for the service to be recorded as revenue
• D) None of the above, contributed services are not recorded as revenue

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Definitions:

Severance Payments

Compensation provided to employees upon dismissal or termination from a company that is usually based on length of service.

Dismissed Executives

Senior employees who have been removed from their positions within a company, often due to performance issues, restructuring, or changes in strategic direction.

Lag The Market

A compensation strategy where an organization deliberately sets wage levels below the average market rate, often due to financial constraints or strategic choice.

Compensation Strategy

A plan established by an organization to determine how to reward employees effectively, taking into account salaries, benefits, bonuses, and other forms of compensation.