Do-Good Inc

question 35

Multiple Choice

Do-Good Inc. is a newly formed not-for-profit organization. On January 1, 2012, its first day of operations, Do-Good purchased equipment costing $8,000. The equipment is estimated to have a useful life of 4 years, with no residual value at that time. This transaction was the only transaction that took place to date. The equipment was purchased from an unrestricted contribution of $8,000. In which fund would the receipt of the unrestricted contribution be recorded?

• A) The General Fund.
• B) The Endowment Fund.
• C) The Capital Fund.
• D) The Encumbrance Fund.

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Definitions:

Umbilicus

The medical term for the navel or belly button, which marks the area where the umbilical cord was attached.

Abdominal Subcutaneous

Refers to the injection or placement of substances into the subcutaneous layer in the abdominal area, often used for consistent absorption of medications.

Zone

An area or stretch of land having a particular characteristic, purpose, or use, or subject to particular restrictions.

Common Diluents

Substances used to dilute a drug or agent, reducing its concentration without affecting its therapeutic action.