Note: This Is a Kaplan CPA Review Question

question 23

Multiple Choice

Note: This is a Kaplan CPA Review Question
Which of the following transactions of a private voluntary health and welfare organization would increase temporarily restricted net assets in the statement of activities for the current year?
I. Received a contribution of $20,000 from a donor in the current year who stipulated that the money not be spent until the following year.
II. Spent $25,000 for fund raising during the current year from a donation from the previous year.

• A) I only
• B) Both I and II
• C) II only
• D) Neither I nor II

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Definitions:

Honorific

A title or word implying or expressing high status, politeness, or respect.

Ancestral Clan

A social group defined by common ancestry, often characterized by shared cultural or religious practices and a recognized common heritage.

Navajo Indians

A Native American people of the Southwestern United States, recognized for their craftsmanship, particularly in weaving, and their significant culture and history.

Biologically Inherited

Traits or characteristics that are passed from parents to offspring through genes, including physical attributes and susceptibility to certain diseases.