United Charities Accepted a Contribution from a Donor and Agreed

question 46

Multiple Choice

United Charities accepted a contribution from a donor and agreed to transfer the assets to Aid for Friends, a not-for-profit that provides temporary shelter to the homeless. United Charities should debit cash or other assets and credit

• A) Unrestricted revenue.
• B) Restricted revenue.
• C) Liability to Aid for Friends.
• D) United Charities should not make an entry.

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Definitions:

Dividend Yield

A ratio that shows how much a company pays out in dividends each year relative to its stock price.

Expected Dividend

The prospective dividend payment that an investor anticipates receiving from an investment in a stock based on current and historic yield trends.

Current Stock Price

The current trading price of a specific stock on the stock market.

Cash Cow

A business, product, or asset that generates consistently high amounts of cash flow, often funding other investments or business operations.