Problem 2 to Record Contribution Revenue (In a Nonrestricted

question 4

Essay

Problem 2 To record contribution revenue (in a nonrestricted fund) (The portion of the contribution that was spent in the same year as it was received may be recorded as nonrestricted revenue.) To record the remaining balance of the contribution (in a donor restricted fund).
d. Endowment earnings To record investment income (in a nonrestricted fund). The entire amount is nonrestricted in as much as the spending restriction was imposed by the board, rather than by outside donors.
e. Increase in market value of investments To record the increase in market value of investments (in a nonrestricted fund). As indicated in the problem, income from endowments is nonrestricted.
f. Depreciation To record depreciation expense (in a nonrestricted fund)
g. Others operating expenses To record the other operating expenses (in a nonrestricted fund)
.
h. Building fund pledge

---

Definitions:

Forecasting Capacity Requirements

The process of estimating the resources and capabilities needed to meet demand over a future period, critical for planning and resource allocation.

Product Life Cycle

The stages through which a product goes from conception to decline, typically categorized as development, introduction, growth, maturity, and decline.

Economic Change

Alterations in the economic conditions or environment, such as growth, recession, inflation, or changes in market demand.

Market Opportunities

Refers to favorable external factors that could help an organization to grow its market share.