Which of the Following Would Be a Contribution Increasing Permanently

question 106

Multiple Choice

Which of the following would be a contribution increasing permanently restricted net assets?

• A) A contribution by a donor in the amount of $1,000,000, set aside by the governing board as funds not to be expended.
• B) A contribution by a donor in the amount of $1,000,000 to be used to acquire land.
• C) Both A & B above.
• D) Neither A nor B above

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Definitions:

Chronological Order

The arrangement of events, dates, or actions in the order that they occurred or will occur, from earliest to latest.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, used to transfer sums from one account to another.

Transaction Analysis

This is the process of reviewing and analyzing a company's transactions to determine their effects on its financial statements.

IFRS

International Financial Reporting Standards are a set of accounting rules and standards that determine how transactions and other accounting events should be reported in financial statements globally.