A significant difference between not-for-profit organizations and businesses with regard to investments in capital (fixed)assets is that
A)Not-for-profits generally do not invest in capital assets.
B)Unlike businesses, not-for-profits do not discount projected future cash flows when evaluating the benefit-cost of an asset acquisition.
C)Unlike businesses, not-for-profits do not include the estimated salvage value of a capital asset in considering whether or not to acquire it.
D)When considering the merit of asset acquisitions, maximizing future cash flows is not the principal objective of a not-for-profit.

Question

Quizplus · Accepted Answer

Not-for-profit organizations focus on fulfilling their mission rather than maximizing future cash flows, which is the primary objective for businesses when evaluating asset acquisitions.

A Significant Difference Between Not-For-Profit Organizations and Businesses with Regard