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An item partly capitalized and organized as a revenue item in the financial statements of a non-profit organization is:

a. Life membership fee b. Entrance fee
c. Special funds
d. Donations
e. Honorarium

1 Answer

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Final answer:

The item partly capitalized and organized as a revenue item in the financial statements of a non-profit organization is the life membership fee. practice is common in various non-profit organizations, such as a nonprofit health organization, a private hospital, or a governmental agency like Health and Social Services.

Step-by-step explanation:

An item partly capitalized and organized as a revenue item in the financial statements of a non-profit organization is the life membership fee. Life membership fees are payments made by individuals to become lifetime members of a non-profit organization.

These fees are typically capitalized and recognized as revenue over the individual's expected lifetime. This practice is common in various non-profit organizations, such as a nonprofit health organization, a private hospital, or a governmental agency like Health and Social Services.

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