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:

Security Interest

A legal claim or liens on property as collateral for the payment of a debt or performance of some other obligation.

Personal Property

Movable assets or belongings, excluding real estate and buildings, owned by an individual or entity.

Third Parties

Individuals or entities that are not directly involved in a contract or negotiation but may be affected by its outcomes or have an interest in its terms.

Indispensable Paper

A critical document without which a particular process or task cannot be completed or understood.