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

question 32

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

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Definitions:

Syllogism

A form of deductive reasoning consisting of a major premise, a minor premise, and a conclusion.

Valid Syllogism

A form of deductive reasoning where, from two given or assumed propositions (premises), a logical conclusion is drawn.

Categorical

Unconditional; absolute; being without exception or qualification.

Distributed

Spread over a wide area or among a large number of people or entities.