If a not-for-profit organization that has had annual revenues above $500,000 for a number of years, subsequently has revenues (for two years or more) significantly lower than $500,000, how must it report its Capital Assets?

Question

Quizplus · Accepted Answer

Regardless of changes in revenue, a not-for-profit organization must continue to capitalize and amortize its capital assets in accordance with generally accepted accounting principles (GAAP). Changes in revenue do not affect how the organization reports its capital assets.

If a Not-For-Profit Organization That Has Had Annual Revenues Above