In not-for-profit accounting, an acquisition occurs when one not-for-profit entity obtains:
A) Significant influence over another not-for-profit entity.
B) More than 50% of another not-for-profit entity's fixed assets.
C) The right to collect more than 20% of pledged contributions.
D) Control over another not-for-profit entity.
E) None of these answer choices are correct. An acquisition can only occur for profit-oriented entities.

Question

Quizplus · Accepted Answer

In not-for-profit accounting, an acquisition occurs when one not-for-profit entity gains control over another not-for-profit entity, which typically involves having the power to direct the activities of the other entity.

In Not-For-Profit Accounting, an Acquisition Occurs When One Not-For-Profit Entity