Rho Pi Phi Fraternity Received a $2,000 Donation from an Alumnus

question 10

Multiple Choice

Rho Pi Phi Fraternity received a $2,000 donation from an alumnus who stipulated the funds be spent to provide a scholarship for a current member.The funds were spent as stipulated.The entry or entries to record the expense are:

• A)\[\begin{array} { l }
• \text { Expense - Temporarily Restricted } &2,000\\
• \quad \text { Cash }&&2,000
• \end{array}\]
• B)\[\begin{array} { l l }
• \text { Expense - Unrestricted } & 2,000 \\
• \quad \text { Cash } && 2,000
• \end{array}\]
• C)\(\begin{array}{llr}
• \text { Expense } &2,000\\
• \text { Cash } &&2,000\\
• &\\
• \text {Reclassifications Out - Temporarily Restricted } &2,000\\
• \text { Reclassifications In - Unrestricted } &&2,000\\
• \end{array}\)
• D)\[\begin{array} { l l }
• \text { Expense } & 2,000 \\
• \quad \text { Cash } && 2,000 \\
• & \\
• \text { Reclassifications In - Unrestricted } & 2,000\\
• \quad \text { Reclassifications Out - Temporarily Restricted } && 2,000
• \end{array}\]

---

Definitions:

Price Changes

Adjustments made to the selling price of goods or services, influenced by factors like market demand, cost of production, and economic conditions.

Subjective Uncertainty

A psychological state in which individuals feel uncertain about situations or outcomes, influencing their decision-making processes.

Economic Uncertainty

A situation characterized by unpredictability or instability in economic policies, market conditions, or other financial elements impacting economies.

Macro Uncertainty

Broad, external uncertainties that impact the economic and business environment, such as geopolitical risks, economic cycles, and significant policy changes.