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

Question 21

Multiple Choice

In not-for-profit accounting, an acquisition occurs when one not-for-profit organization obtains:

A) Significant influence over another not-for-profit organization.
B) The direct ability to determine the direction of management of another not-for-profit organization.
C) The indirect ability to direct the policies of management of another not-for-profit organization.
D) Control over another not-for-profit organization.
E) None of these. An acquisition can only occur for profit-oriented organizations.

Correct Answer: