According to the rules for accounting for colleges and universities under the jurisdiction of the FASB,Contributed services should be recognized only when the services create or enhance nonfinancial assets or require specialized skills,are provided by an individual possessing those skills,and would typically be purchased if not provided by donation.

Question

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This statement is correct according to the FASB guidelines for accounting for colleges and universities. Contributed services should only be recognized if they meet specific criteria, such as enhancing nonfinancial assets or requiring specialized skills that would typically be purchased if not provided by donation.

According to the Rules for Accounting for Colleges and Universities