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:

Devil's Advocate

A role adopted in discussions where an individual presents a contrary opinion or perspective for the sake of argument.

Social Loafing

The tendency for individuals to decrease their effort in pursuing a goal when working in a collaborative environment versus working on their own.

Task-Oriented

An approach or behavior focused primarily on completing tasks or achieving specific objectives.

Performance-Oriented

Focused on achieving high levels of performance and often concerned with the outcomes or results of actions rather than the process.