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1) To what extent do not-for-profit organizations have capability to select among the following:

a) Using depreciation

b) Ignoring depreciation

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

d) Showing such assets at their market value, or

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

2) The ABC is a not-for-profit organization which has numerous programs, like environmental efforts, grade-school education, gardening, and reforestation program. It illustrates many volunteers for its efforts. Point out which, if any, of 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) Architect makes phone calls to past clients and investors to increase contributions on behalf of ABC for the capital campaign to finance greenhouse.

c) After greenhouse is built, architect spends numerous days planting vegetables and flowers.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914360

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