If a Donor Selects a Scholarship Recipient and Then Donates

question 22

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 a liability, as it is acting as an agent for the donation
• B) Record the donated cash as a contribution
• C) Not record the donation at all, but disclose it in the footnotes
• D) Record the scholarship awarded as a reduction of revenue

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Definitions:

Slow-To-Warm-Up

A temperament trait in some individuals characterized by a cautious, reflective approach to new experiences or strangers, often requiring more time to adjust.

Chess and Thomas

Refers to researchers Stella Chess and Alexander Thomas, known for their studies on child temperament and development.

Temperament

The innate or genetically influenced aspect of an individual's personality and behavioral tendencies.

Very Active

Exhibiting high levels of physical or mental activity, often associated with vigor and energy.