A Donor Made a Cash Contribution of $75,000 to a Private

question 12

Multiple Choice

A donor made a cash contribution of $75,000 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 unrestricted.
• B) 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.
• C) Record the plant as either unrestricted or temporarily restricted, as long as a consistent policy is followed.
• D) Record the building as permanently restricted.

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Definitions:

Performance Data

Information and statistics collected about the operations of a system or the activities of individuals and organizations to evaluate effectiveness or efficiency.

Aggregate

A whole formed by combining several separate elements; often used in the context of data or materials.

Efficiency Metrics

Quantitative tools used to assess the productivity and performance of a system or process, focusing on maximizing outputs with minimal inputs.

Total Cost

The complete amount of money required to produce goods or services, including fixed and variable costs.