How Does a For-Profit Organization Record Contributions Made to a Private

question 11

Multiple Choice

How does a for-profit organization record contributions made to a private not-for-profit organization?

• A) As an expense when originally pledged.
• B) As a reduction in revenue when pledged.
• C) As an expense when contributed.
• D) As a reduction in revenue when contributed.

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Definitions:

Utilitarianism

An ethical theory suggesting that the best action is the one that maximizes utility, often defined in terms of the well-being of sentient entities.

Humanism

An outlook or system of thought attaching prime importance to human rather than divine or supernatural matters, emphasizing human dignity and potential.

Approved Standards

Refers to formal guidelines or specifications that have been validated by an authoritative body or consensus for repeated use.

Unethical Behavior

Not conforming to a set of approved standards of behavior— cheating on an exam, for example.