A Nongovernment, Not-For-Profit Organization Received $5,000,000 of Unconditional Pledges During

question 18

Multiple Choice

A nongovernment, not-for-profit organization received $5,000,000 of unconditional pledges during 2013 that had not been collected by year end. In its 2013 statement of activities, the organization should recognize

• A) No revenues, but should report receivables and deferred revenues in its balance sheet.
• B) Revenues without donor restrictions of $5,000,000.
• C) Revenues with donor restrictions of $5,000,000.
• D) Other financing sources of $5,000,000.

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Definitions:

Compounding

The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

Average Rate Of Return

A financial ratio that estimates the profitability on an investment over a period.

Increasing

A term indicating growth or an upward trend in quantitative measures or metrics, such as increasing sales, profits, or productivity.

Increasing

Refers to a situation or quantity that is becoming greater over time.