A Nongovernment, Not-For-Profit Organization Provides the Following Information and Asks

question 11

Short Answer

A nongovernment, not-for-profit organization provides the following information and asks you to determine how much revenue should be reported in each of its changes in net assets categories. All pledges are unconditional $$\begin{array} { | l | r | } \hline \text { Cash contributions restricted to specific proprarns } & \$ 200,000 \\\hline \text { Cash contributions restricted to endownent } & \$ 1,000,000 \\\hline \begin{array} { l } \text { Net realizable value of pledges to a buildirg prograrn } \\\text { resulting fron current year furdd raising efforts }\end{array} & \$450,000\\\hline \begin{array} { l } \text { Net realizable value of unconditional pledges resulting } \\\text { from curtent year fund raising efforts }\end{array} & \$150,000 \\\hline\end{array}$$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Changes in }$
$\begin{array}{rrr}& \text { Net Assets } & \text { Net Assets } \\&\text { without } & \text { With } \\&\text { Donor Restrictions } & \text { Donor Restrictio }\\\text { A. } & \$ 0 & \$ 1,755,000 \\\text { B. } & \$ 0 & \$ 755,000 \\\text { C. } & \$ 105,000 & \$ 1,650,000 \\\text { D. } & \$ 305,000 & \$ 1,450,000\end{array}$

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Definitions:

Extortion

The practice of obtaining something, especially money, through force or threats.

Burglary

The break-in of a dwelling or building for the purpose of carrying out a felony.

Robbery

The act of taking personal property from the possession of another against that person’s will and under threat to do great bodily harm or damage.

Forgery

The act of fraudulently making or altering a document with the intent to deceive.