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How Does a Not-For-Profit Entity Account For: 1) Cash Contributions

question 45

Essay

How does a not-for-profit entity account for: 1) cash contributions, and 2) donated goods that are received for operating purposes? What types of revenues are recognized by voluntary health and welfare entities?


Definitions:

Land

An asset category in accounting representing real estate or property owned by a business, excluding buildings or structures on the property.

Investing Activities

Financial transactions related to the purchase or sale of long-term assets and investments, as reported in a company's cash flow statement.

Operating Activities

Business actions directly related to the production and delivery of goods and services, generating the primary revenue streams.

Equipment

In business, equipment refers to the tangible assets used in operations, such as machinery, computers, and tools, which are not intended for sale.

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