During the Current Year, a Voluntary Health and Welfare Organization

question 25

Multiple Choice

During the current year, a voluntary health and welfare organization receives $800,000 in unrestricted pledges.Of this amount, $300,000 has been designated by donors for use next year to support operations in the pharmacy.If 20 percent of the unrestricted pledges are expected to be uncollectible, what amount of unrestricted support should the organizations recognize in its current-year financial statements?

• A)$800,000
• B)$700,000
• C)$500,000
• D)$400,000

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Definitions:

Certification

The process of formally validating the qualifications, competence, or authority of an individual or organization in a specific area.

Binding Arbitration

A dispute resolution process where an arbitrator's decision is legally enforceable, requiring parties to abide by the decision without appeal to a court.

Conciliation

A voluntary process where a conciliator helps disputing parties to reach a mutually acceptable agreement.

Increase Wages

The act of raising the amount of money that workers receive as compensation for their labor.