Which of the following is not true? 1. SOP 94-2 concludes that not-for-profit organizations should follow the guidance in effective provisions of GAAP, unless the specific pronouncement explicitly...

Which of the following is not true?

1. SOP 94-2 concludes that not-for-profit organizations should follow the guidance in effective provisions of GAAP, unless the specific pronouncement explicitly exempts not-for-profit organizations or their subject matter precludes such applicability.

2. Not-for-profit organizations account for a substantial portion of economic activity in the United States.

3. Prior to SOP 94-2, not-for-profit accounting principles were derived solely from AICPA audit guides.

4. Under SFAS No. 116, ‘‘Accounting for Contributions Received and Contributions Made,’’ contributions received are to be recognized as revenues or gains in the period received.

5. For a not-for-profit organization, the statement of activities should show realized or unrealized gains and losses.