If a Donor Selects a Scholarship Recipient,and Then Donates Cash

question 45

Multiple Choice

If a donor selects a scholarship recipient,and then donates cash to a ballet school to fund that scholarship,the ballet school would:

• A) Record the donated cash as a contribution.
• B) Record a liability, as it is merely acting as an agent for the donation.
• C) Record the scholarship awarded as a reduction of revenue.
• D) Both A & C.

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Definitions:

Demands

Requests or claims, typically forceful, for something considered due or legally owed.

Binding Decision

A decision, ruling, or judgment that is final and enforceable by law, requiring the parties involved to comply.

Discovery

A pre-trial procedure in a lawsuit where each party can obtain evidence from the other party or parties by means of discovery devices such as interrogatories, depositions, requests for production of documents.

Arbitrator

A neutral third party chosen to settle disputes outside of court.