When an Enterprise Is the Recipient of a Donated Asset

question 101

Multiple Choice

When an enterprise is the recipient of a donated asset, the account credited may be a

• A)paid-in capital account.
• B)revenue account.
• C)deferred revenue account.
• D)all of these.

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Definitions:

Simplifying Assumptions

Basic assumptions made in economic models to eliminate complex factors and make analysis more manageable, even if they might not fully hold in the real world.

Economic Models

Theoretical constructs that represent economic processes by a set of variables and a set of logical and/or quantitative relationships between them.

Policies

Guidelines or principles adopted by an organization, government, or individual to guide decision-making and achieve desired outcomes.

Positive Economics

The branch of economic analysis that describes the way the economy actually works.