When an Enterprise Is the Recipient of a Donated Asset

question 36

Multiple Choice

When an enterprise is the recipient of a donated asset, the account credited would probably be a(n)

• A) equity account.
• B) revenue account.
• C) deferred revenue account.
• D) asset account.

---

Definitions:

Balance

The amount of money currently in an account or owed on an account at any given time.

Monthly Payments

Regular payments made towards a loan or mortgage each month.

Compounded Semi-Annually

Calculation of interest on the initial principal and the accumulated interest over the first 6 months repeated every half year.

RRSP

Registered Retirement Savings Plan, a Canadian investment vehicle that allows for tax-deferred savings towards retirement.