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:

Flood

A flood is an overflow of water that submerges land that is usually dry, often caused by heavy rain, melting snow, or dam failure, leading to potential damage and loss.

Von Neumann-Morgenstern

A theory of expected utility, which provides a method for making decisions based on the expected outcomes of various choices.

Expected Value

A statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen.

Natural Logarithm

A mathematical function denoted as ln(x), representing the time needed to reach a certain level of growth at a constant growth rate of 100%.