A Donor Made a Cash Contribution of $50,000 to a Private

question 43

Multiple Choice

A donor made a cash contribution of $50,000 to a private college for the purpose of acquiring a building. The private college properly recorded the gift of cash as a temporarily restricted revenue. When the building is acquired, the college should:

• A) Record the building as permanently restricted
• B) Record the building as unrestricted
• C) Show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets
• D) Record the plant as either unrestricted or temporarily restricted, as long as a consistent policy is followed

Identify the limitations and alternatives of rule-based scheduling systems.

Gain insight into the variety of planning files and their utilization in scheduling decisions.

Understand the definitions and differences between annuities due and ordinary annuities.

Recognize financial instruments or arrangements that fit the definition of a perpetuity.

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Definitions:

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition primarily through product differentiation.

Cournot Equilibrium

A situation in an oligopoly in which each company chooses its production level assuming the output of its competitors, resulting in a stable market output.

Collusion

An agreement between firms to limit competition, set prices, or divide markets, which usually distorts the outcomes of a free market.

Marginal Revenue

Marginal Revenue is the additional income acquired from selling one more unit of a product or service, crucial for determining optimal production levels.