The Transactions Described in the Following Questions Occurred in a Voluntary

question 48

Short Answer

The transactions described in the following questions occurred in a voluntary health and welfare organization during the year ended December 31, 20X8. For each transaction, indicate its effect(s) on the organization's statement of activities prepared for the year ended December 31, 20X8. List all effects of transactions affecting more than one class of net assets. Indicate your choice(s) by entering the letter corresponding to the effects listed here:
Effects of Transactions on Statement of Activities
A. Increases unrestricted net assets.
B. Decreases unrestricted net assets.
C. Increases temporarily restricted net assets.
D. Decreases temporarily restricted net assets.
E. Increases permanently restricted net assets.
F. Decreases permanently restricted net assets.
G. Transaction is not reported on the statement of activities.
A gain was realized from the sale of securities which were permanently invested. The gain is restricted as to use.

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Definitions:

Epilepsy

A neurological disorder marked by sudden recurrent episodes of sensory disturbance, loss of consciousness, or convulsions, associated with abnormal electrical activity in the brain.

Depakote

A brand name for divalproex sodium, a medication used to treat seizure disorders, manic episodes of bipolar disorder, and to prevent migraine headaches.

Prozac

A brand name for fluoxetine, a medication primarily used to treat major depressive disorder, obsessive-compulsive disorder, and panic disorder.

Serotonin

A neurotransmitter in the brain that plays a key role in mood regulation, gastrointestinal activity, and other bodily functions.