Open Air Conservatory, a Not-For-Profit Entity, Held a Fund-Raising Drive

question 40

Multiple Choice

Open Air Conservatory, a not-for-profit entity, held a fund-raising drive to raise money to buy land to provide a habitat for the endangered Sleepy Eagle.A donor pledged $1 million to the project provided that Open Air Conservatory was able to raise an additional $1.5 million from other sources.What entry should Open Air Conservatory make at the time of the $1 million pledge?

• A)Debit Pledge receivable $1 million; Credit Unrestricted revenue $1 million.
• B)Debit Pledges receivable $1 million; Credit Temporarily restricted revenue $1 million.
• C)Debit Pledges receivable $1 million; Credit Temporarily restricted net assets $1 million.
• D)No entry is made at the time of the pledge.

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Definitions:

Positive Selection

The evolutionary process by which alleles that confer a fitness advantage increase in frequency within a population, leading to adaptation.

Purifying Selection

A type of natural selection that removes deleterious alleles from a population, leading to a decrease in genetic variation for the traits affected.

Neutral Theory

A theory in molecular evolution that proposes most genetic variations are the result of genetic drift and not selective forces, and that at the molecular level, the majority of mutations are neutral.

Molecular Evolution

The process of evolution at the scale of DNA, RNA, and proteins, encompassing changes in molecular structure and sequence over time.