Whether the Financial Accounting Standards Board (FASB) or Governmental Accounting Standards Board (GASB) determines GAAP for a nonprofit organization depends upon whether the nonprofit organization is a healthcare entity.

Group of answer choices

True

False

Historical artifacts that are donated to a nonprofit always should be reported at their fair value.

Group of answer choices

True

False

FASB revenue recognition requirements require nonprofits to apply five steps to each type of exchange contract to determine when to recognize revenue. The first 4 steps are (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, and (4) allocate the transaction price to the performance obligations in the contract.

What is the 5th step?

Group of answer choices

Recognize revenue when it is probable that the customer will pay for the goods or services

Recognize revenue when (or as) the entity satisfies the related performance obligation

Recognize revenue when the customer pays the bill

Recognize revenue when the nonprofit prepares an invoice for the service

The primary distinction between a public charity and a private foundation is that private foundations derive their resources mostly from a small number of donors (individuals or corporations).

Group of answer choices

True

False