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Week VI

Why would public service organizations need to measure income?

Consider the revenue results from telephone solicitations by Meals for the Homeless on page 317 in your textbook (see Exhibit 10-2). What do you make of this? What are some possible explanations? What questions do you have?

Week VII

To what extent do not-for-profit organizations have the ability to choose 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. completely charging such assets such as expenses in the year acquired?

Donations in cash are easy to measure. What is the treatment that not-for-profit organizations use for donated goods and services?

Distinguish between the way investor owned and not-for-profit healthcare organizations treat investments.

What are the possible types of interfund transactions? Explain.