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1) To what extend do not-for-profit organizations have a ability to select among the given:

a) Using depreciation

b) Ignoring depreciation

c) Maintaining building and equipment on the balance sheet at their original cost

d) Illustrating such assets at their market value, or

e) Completing charging such assets as expenses in the year acquired?

2) The ABC Inc is a not-for-profit organization which has many programs, like gardening, grade-school education, environmental efforts and a reforestation program. It draws many volunteers for its efforts. Point out which, of the given activities must be recorded as donated services.

a) Architect drew up blueprints for the new greenhouse free of charge. ABC would have hired an architect otherwise

b) The architect creates phone calls to past clients and investors to raise contributions on behalf of ABC for a capital campaign to finance greenhouse.

c) After greenhouse is made, the architect spends many days planting vegetables and flowers.

Basic Finance, Finance

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