Which statement below is not correct for financial statements of not-for-profit entities?
A) Pledged contributions are recognized in the accounting period in which pledged by donors.
B) A not-for-profit entity's Statement of Financial Position includes a section specifically for net assets.
C) Contributed assets are recognized by a not-for-profit entity as public support contribution revenue.
D) Depreciation expense is not recognized by not-for-profit entities.
E) Not-for-profit entities issue a Statement of Activities.

Question

Quizplus · Accepted Answer

Not-for-profit entities do recognize depreciation expense as it reflects the allocation of the cost of tangible assets over their useful lives, similar to for-profit entities.

Which Statement Below Is Not Correct for Financial Statements of Not-For-Profit