Under the Deferral Method of NFP Accounting for Unrestricted Contributions

question 15

Multiple Choice

Under the deferral method of NFP accounting for unrestricted contributions, ________.

• A)revenues are recognized first and then matched to the expenses
• B)revenues are recognized first and then matched to the expenditures
• C)expenses are recognized first and then matched to the revenues
• D)expenditures are recognized first and then matched to the revenues

---

Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or sold but not yet paid for.

Triple Bottom Line

A framework that encourages companies to focus on social, environmental, and financial performance metrics equally.

Closed-Loop Supply Chain

A supply chain model that integrates forward logistics with reverse logistics, focusing on recycling and reusing materials to minimize waste and improve sustainability.

Work in Process Inventory

Work in process inventory consists of goods and materials that have started the production process but are not yet completed at a specific point in time.