_____ Under FAS 116, which of the following contributed services are not recognized in the financial statements?
A) Contributed services that enhance nonfinancial assets.
B) Contributed services that create nonfinancial assets.
C) Contributed services that are performed by persons having specialized skills.
D) Contributed services performed by persons not having specialized skills.
E) None of the above.

Question

_____	Under FAS 116, which of the following contributed services are not recognized in the financial statements?
A) Contributed services that enhance nonfinancial assets.
B) Contributed services that create nonfinancial assets.
C) Contributed services that are performed by persons having specialized skills.
D) Contributed services performed by persons not having specialized skills.
E) None of the above.

Quizplus · Accepted Answer

Under FAS 116, contributed services are recognized in the financial statements if they (a) create or enhance nonfinancial assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. Services that do not meet these criteria, such as those performed by individuals without specialized skills, are not recognized.

_____ Under FAS 116, Which of the Following Contributed Services Are