Open Air Conservatory, a Not-For-Profit Entity, Held a Fund-Raising Drive

question 40

Multiple Choice

Open Air Conservatory, a not-for-profit entity, held a fund-raising drive to raise money to buy land to provide a habitat for the endangered Sleepy Eagle.A donor pledged $1 million to the project provided that Open Air Conservatory was able to raise an additional $1.5 million from other sources.What entry should Open Air Conservatory make at the time of the $1 million pledge?

• A)Debit Pledge receivable $1 million; Credit Unrestricted revenue $1 million.
• B)Debit Pledges receivable $1 million; Credit Temporarily restricted revenue $1 million.
• C)Debit Pledges receivable $1 million; Credit Temporarily restricted net assets $1 million.
• D)No entry is made at the time of the pledge.

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Definitions:

Transaction Model

A communication framework that considers the dynamic and reciprocal exchange of messages between sender and receiver, including the context and potential for feedback.

Formal Communication

Structured exchange of information that follows established protocols or rules within an organization.

Informal Networks

The unofficial and interpersonal connections and pathways through which information and influence flow within an organization.

Communication Flows

The direction and manner in which information moves within and between organizations or individuals.