A CPA donates her services to prepare the annual financial report for a voluntary health and welfare organization.The services should be recorded as:

Question

Quizplus · Accepted Answer

The CPA's donation of services is a non-cash transaction and should be recorded as both revenues-unrestricted and accounting expenses. The revenues-unrestricted account will recognize the value of the service donated, while the accounting expenses account will recognize the cost of the service to the organization. This will result in a net zero effect on the organization's financial statements. A footnote disclosing the donation may also be included in the financial report for additional transparency.

A CPA Donates Her Services to Prepare the Annual Financial