Which of the Following Would Be a Contribution Increasing Permanently

question 149

Multiple Choice

Which of the following would be a contribution increasing permanently restricted net assets?

• A) A contribution by a donor in the amount of $1,000,000, set aside by the governing board as funds not to be expended.
• B) A contribution by a donor in the amount of $1,000,000, set aside by the donor as funds not to be expended.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

CCA Rate

Refers to Capital Cost Allowance rate, which is the rate at which a business can claim tax depreciation on certain properties or equipment in Canada.

CCA Class

Canadian Capital Cost Allowance Class; a categorization in Canadian tax law that determines the depreciation rate for tax purposes on different types of assets.

Required Rate

The lowest expected gain an investor aims to receive from an investment in a specific asset, taking into account the associated risk.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums.