_____ Under FAS 116, which of the following donated services would not be recognized as contributions in the statement of activities?
A)Services contributed by lay volunteers manning a phone bank.
B)Services provided by a lawyer (giving free legal advice).
C)Services provided by a certified public accountant (performing an audit for free).
D)Services provided by a carpenter (repairing facilities for free).
E)None of the above.

Question

Quizplus · Accepted Answer

Under FAS 116, services that require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation, are recognized as contributions. Services by lay volunteers, such as manning a phone bank, do not meet these criteria and thus are not recognized as contributions in the statement of activities.

_____ Under FAS 116, Which of the Following Donated Services