Which of the Following Would Result in Higher Income Under

question 8

Multiple Choice

Which of the following would result in higher income under the cash basis as compared to the accrual basis deferral method for a not-for-profit organization in its first year of operations?

• A)When cash donations are received for land to be purchased in a future year
• B)When unrestricted cash donations are received
• C)When funds are expended on capital assets
• D)Where pledges are received for a building to be constructed in a future year

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body for rapid action in response to threats.

Central Nervous System

The complex system of nerves consisting of the brain and spinal cord that regulates and coordinates body activities.

Parasympathetic Nervous System

The parasympathetic nervous system is part of the autonomic nervous system responsible for conserving energy and bringing the body to a restful state after periods of stress or danger.

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements via skeletal muscles, and conveys sensory and motor information to and from the central nervous system.