At the Time the Foundation Receives the Donation, the Foundation

question 35

Multiple Choice

At the time the foundation receives the donation, the foundation should debit Cash for $1 million and credit what account for $1 million?

• A)Unrestricted revenue.
• B)Temporarily restricted revenue.
• C)Liability.
• D)No entry should be made by the foundation.

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Definitions:

Liquidity

The ease with which an asset can be converted to cash without affecting its market price.

Homemade Dividends

The concept where investors sell a portion of their portfolio to create cash flow, as an alternative to relying on traditional dividends from investments.

Dividend Policy

A company's strategy or guidelines for making dividend payments to its shareholders.

Share Value

The price at which a particular share of stock is traded on the market, determined by supply and demand.