An Annual Contributor to a Nongovernmental Not-For-Profit Hospital Made an Unrestricted

question 41

Multiple Choice

An annual contributor to a nongovernmental not-for-profit hospital made an unrestricted pledge in October 2019 that will be paid in March 2020. Assuming the hospital's fiscal year-end is December 31, 2019, the pledge should be credited to:

• A) Contributions-With Donor Restrictions in 2019.
• B) Contributions-Without Donor Restrictions in 2019.
• C) Contributions-With Donor Restrictions in 2020.
• D) Contributions-Without Donor Restrictions in equal amounts in 2019 and 2020.

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Definitions:

Substitution Bias

Substitution bias occurs in inflation measurement and refers to the tendency of consumers to change their purchasing habits away from goods that have increased in price to cheaper alternatives, which is not always fully captured by price indexes.

CPI

The Consumer Price Index, which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Consumer Substitution

The tendency of consumers to switch from one good to another in response to changes in relative prices, keeping their level of satisfaction or utility constant.

New Good

A product that has been recently developed or introduced to the market, offering new benefits or replacing existing goods.