Where Should Be Endowment Contributions Presented in the Financial Statements

question 38

Multiple Choice

Where should be endowment contributions presented in the financial statements of a not-for-profit organization under the deferral method?

• A) They are reflected in the notes to the financial statements.
• B) They are used to effect a reduction to a related expense account.
• C) They are reflected in the statement of changes in net assets.
• D) They are shown in the statement of operations.

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Definitions:

Core Work

The primary activities or tasks that are central to the main business or function of an organization.

Transactional

Relating to exchanges or interactions between parties, often with a focus on business transactions.

Consultants

Professional experts who are hired to provide advice and expertise in a specific field to solve problems or enhance the performance of an organization.

Absence Management

A strategic approach that organizations use to reduce the impact and occurrence of employee absenteeism, ensuring productivity is maintained.