Which of the following is not a condition that must be met for contributed servi
ID: 2359720 • Letter: W
Question
Which of the following is not a condition that must be met for contributed services to a not-for-profit organization (NPO) to be recorded as both a contribution and as an expense? A. The service creates or enhances nonfinancial assets, such as a carpenter renovating a building. B. The service is provided by someone who possesses specialized skills, such as a lawyer preparing contracts. C. The service provides tangible benefit, such as serving food to clients. D. The service would have to be purchased if not donated, such as a pro bono annual audit by a local audit firm.Explanation / Answer
B. The service is provided by someone who possesses specialized skills, such as a lawyer preparing contracts.