The Following Gifts Are Received in 2016 by a Not-For-Profit

question 14

Multiple Choice

The following gifts are received in 2016 by a not-for-profit entity:
I.$2,000 specified by the donor to be used to pay salaries.
II.$10,000 specified by the donor for new conference room furniture.
III.$5,000 specified by the donor to be held for one year before being expended.
The salaries are paid in 2017 and the conference room furniture is purchased in 2016. The donor did not specify any time restriction on holding the conference room furniture.
-With respect to the donations received in 2016, what amount should be reported in the Statement of Activities as net increase to Temporarily Restricted Net Assets for the year 2016?

• A) $ 2,000
• B) $ 7,000
• C) $12,000
• D) $15,000
• E) $17,000

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Definitions:

Superiority

The belief or condition of being superior to others; in psychology, Adler used it to describe a motivating force behind human behavior.

Privacy Need

The intrinsic human requirement for personal space and confidentiality, affecting emotional and psychological well-being.

Neurotic Needs

Refers to ten interpersonal needs identified by Karen Horney that can become problematic if they dominate one's behavior, such as the need for approval or power.

Irrational Solutions

Refers to ineffective or unrealistic responses to problems or situations, often stemming from cognitive distortions or emotional biases.