Consider the revenue results from telephone solicitations by Meals for the Homeless in 2011 (see Exhibit 10-2). What do you make of this? What are some possible explanations? What questions do you have?
Why would public service organizations need to measure income?
Does the difficulty in determining the current value of an asset create a problem in determining the depreciation expense that should be charged for a year?
What are the problems with the objective evidence and cost conventions, and how can they be overcome?
Can permanently restricted net assets be changed to temporary or unrestricted? Under what conditions if yes?