A Donor Pledged $200,000 to the Fund Raising Drive of a Local

question 46

Multiple Choice

A donor pledged $200,000 to the fund raising drive of a local government to assist its police officers in obtaining the latest technology.The pledge was made on July 16,2011 but was conditioned on the government raising an additional $200,000 from other donors.By the fiscal year-end of June 30,2012,the local government had raised only $5,000 from other donors.What entry would be made for the initial pledge by the local government during the year ended June 30,2012?

• A) No entry is required.
• B) Debit a receivable and credit deferred revenues, a liability.
• C) Debit a receivable and credit Fund Balance.
• D) Debit a receivable and credit a revenue.

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Definitions:

Social

Relating to society or its organization, emphasizing the interactions and relationships of individuals within a group.

Productive Activities

Tasks or processes that lead to the creation of goods or services which have value and contribute to the economy.

Ethics Committee

A group responsible for overseeing the ethical aspects of an organization's operations, including making decisions on moral and ethical issues.