A not-for-profit organization is NOT required to capitalize and amortize its capital assets if the organization ________.
A)has assets that total less than $500,000.
B)has an annual change to net assets of less than $500,000.
C)has less than 50 full-time employees.
D)has a two-year average annual revenues of less than $500,000.

Question

Quizplus · Accepted Answer

Not-for-profit organizations are not required to capitalize and amortize their capital assets if they have a two-year average annual revenue of less than $500,000, as this threshold indicates a smaller scale of operations where such accounting practices may not be necessary.

A Not-For-Profit Organization Is NOT Required to Capitalize and Amortize