Generally Speaking, Not-For-Profit Organizations Record and Measure Transactions and Events

question 29

Multiple Choice

Generally speaking, not-for-profit organizations record and measure transactions and events in the same manner as commercial enterprises. They do, however, differ from commercial enterprises in two important ways. Which of the following is one of those differences?

• A) Not-for-profit organizations receive considerable amounts of resources from the government.
• B) Not-for-profit organizations do not record revenues until money is actually received.
• C) Donors frequently impose restrictions on the use of donated resources.
• D) Commercial enterprises use accrual accounting and not-for-profits use modified accrual accounting.

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Definitions:

Annual Property Taxes

Taxes assessed on property ownership, levied annually based on the property's assessed value.

Real Estate

Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Title Fees

Costs associated with the transfer of ownership or the establishment of rights to a property.

Sales Taxes

Taxes imposed on the sale of goods and services, typically collected by the retailer and passed on to the government.