Where Should Be Endowment Contributions Presented in the Financial Statements

question 47

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:

Average Cost

A method of inventory valuation where the cost of goods sold and ending inventory are calculated based on the average cost of all similar items held in inventory.

Inventory System

The method a company uses to manage and track its inventory, ensuring the right quantity of products at the right time and minimizing costs.

Perpetual

A system of inventory management wherein updates are made continuously to the inventory accounts after each purchase or sale.

Receiving Report

A document that records the details of goods received by a company, ensuring the quantities match the order and invoice.