Which Entry Would Be the Correct Entry on the Not-For-Profit

question 40

Multiple Choice

Which entry would be the correct entry on the not-for-profit entity's books to record a donor's gift when the donor retains power over the assets? DEBIT CREDIT

• A) Expense-charitable contribution Cash
• B) Refundable advance to charity Cash
• C) Cash Liability to beneficiary
• D) Cash Refundable advance
• E) Cash Contribution revenue

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Definitions:

Hourly Wages

The amount of money paid to an employee for each hour of work performed.

Total Costs

The aggregate amount of spending involved in generating goods or services, factoring in both stable and changeable costs.

Variable Costs

Variable costs are expenses that vary directly with the level of production or sales volume, such as materials and labor.

ATC Curve

Represents the average total cost of production, calculated by dividing the total cost by the quantity of output produced, depicted graphically.