Question
1. On a statement of functional expenses for a research foundation, the cost of the annual audit would most likely be classified as: Program expenses
1. On a statement of functional expenses for a research foundation, the cost of the annual audit would most likely be classified as:
Program expenses | ||
Fundraising expenses | ||
Management and general ( also called general and administrative) expenses | ||
Membership expenses |
2. If you compared the accounting rules for business combinations for businesses and the rules related to nonprofit organizations, which of the following statements is most correct?
Under both sets of rules, all business combinations are treated as acquisitions of one organization with another, with the assets and liabilities of the acquired organization being revalued at fair value at the acquisition date. | ||
Under both sets of rules, all business combinations are treated as mergers of one organization with another, with the assets and liabilities of the acquired organization being kept at their prior book value at the acquisition date. | ||
All business combinations are treated as acquisitions, and all nonprofit combinations are treated as mergers, with the assets and liabilities of the acquired organization being kept at their prior book value at the acquisition date . | ||
All business combinations are treated as acquisitions. Some nonprofit combinations are treated as mergers, and some as acquisitions. |
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