Contributions Received by NFP's May Be Restricted

question 34

Essay

Contributions received by NFP's may be restricted.Funds can be received in the form of endowment contributions,and contributions that are externally restricted by the donor or internally restricted by the Board.
Required:
Explain the differences between endowment contributions,contributions that are externally restricted by the donor or internally restricted by the Board.Discuss the accounting treatment for each type of restricted contribution if the NFP uses the deferral method of reporting.

---

Definitions:

ATM Card

A plastic card issued by financial institutions that allows customers to access their accounts and perform transactions at Automated Teller Machines.

Television Remote

A handheld device used to operate a television from a short distance away, allowing the user to change channels, adjust volume, and access other functionalities without directly interacting with the television set.

Bell Canada

A major Canadian telecommunications and media company that provides a wide range of products and services including internet, television, and phone services.

Work Redesign

Involves altering jobs to improve employee satisfaction, productivity, and efficiency, potentially by enhancing job scope, depth, or work processes.