During the Fiscal Year Ended June 30,20X9,Global Charities,a Voluntary Health

question 73

Multiple Choice

During the fiscal year ended June 30,20X9,Global Charities,a voluntary health and welfare organization,received unrestricted cash contributions of $500,000 and temporarily restricted cash contributions of $300,000.All of the temporarily restricted contributions were restricted by the donors for equipment acquisitions.During the year ended June 30,20X9,equipment costing $250,000 was acquired with the restricted contributions.As a result of these two contributions,Global Charities' statement of cash flows,prepared for the year ended June 30,20X9,would report an increase in net cash provided by operating activities of:

• A)$500,000.
• B)$800,000.
• C)$750,000.
• D)$550,000.

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Definitions:

Unavoidable Waste

Waste that cannot be reduced or eliminated during the production process due to inherent limitations or efficiency constraints.

Unexpected Spoilage

Loss or waste of materials, products, or resources that occurs unexpectedly during the production process and is not a part of planned spoilage.

Normal Spoilage

Normal spoilage refers to the expected amount of waste or loss of materials during a production process, considered as a usual and unavoidable cost of doing business.

Unfavorable Variance

A situation where actual costs exceed budgeted or expected costs, often indicating poorer than expected financial performance.