Under the Deferral Method, How Should Contributions Received in the Current

question 50

Multiple Choice

Under the deferral method, how should contributions received in the current year but restricted for operating expenses for one or more future periods be reported in the current year?

• A)As revenue in the statement of operations.
• B)As a direct increase to net assets.
• C)As deferred revenue on the balance sheet.
• D)As a reduction of operating expenses on the statement of operations.

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Definitions:

Environment

The ecological or contextual area in which a specific entity operates, including all biological, chemical, and physical conditions affecting it.

Trust

The reliance on the integrity, strength, ability, or surety of a person or thing; cornerstone in relationships and transactions.

Stress

A physical or psychological response to internal or external pressures, often characterized by feelings of strain or tension.

Work Environment

The work environment encompasses the physical and psychological conditions under which employees perform their job duties, including factors such as workplace culture, safety, and resources.