📏CPA EXAM PREP

Not-for-Profit Financial Statements

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Question

When is a restriction for acquiring a long-lived asset released?

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Answer

When the asset is placed in service.

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Question

Why is ordinary volunteer labor usually not recognized?

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Answer

It does not meet the contributed-services criteria.

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Question

How are contributed nonfinancial assets measured and presented?

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Answer

At fair value, separately presented on the statement of activities.

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Question

Why does variance power change an intermediary transfer's accounting?

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Answer

It gives the recipient control, so the transfer is revenue rather than a liability.

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