Which Entry Would Be the Correct Entry on the Donor's

question 61

Multiple Choice

Which entry would be the correct entry on the donor's books when the donor relinquishes control of an asset, such as cash, which it contributes to a not-for-profit entity? DEBIT CREDIT

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

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Definitions:

Piecework Rate

Rate of pay per unit produced.

Production Workers

Individuals involved in the manufacturing or assembly phase of production, responsible for operating machinery, building goods, and maintaining efficiency on the production line.

Straight Piecework Plan

A compensation system where workers are paid a fixed rate for each unit produced or action performed, regardless of time.

Incentive Pay

Compensation above the base salary offered to employees as a motivation for achieving performance targets.