A Major Corporation Makes a Donation of $10,000,000 to the Local

question 8

Multiple Choice

A major corporation makes a donation of $10,000,000 to the local art museum foundation for the construction of a new art museum provided the community can match the $10,000,000 with other donations.This is an example of a(n) :

• A)​Unconditional Pledge
• B)​Unrestricted Contribution
• C)​Conditional Pledge
• D)​Endowment

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Definitions:

Deferred Tax

The amount of income tax payable/recoverable in future reporting periods in respect of temporary differences and tax losses.

Balance Date

The date on which a company's financial year ends and financial statements are prepared to reflect the company's financial position.

Accounting Adjustments

Entries made in accounting records at the end of a period to correct accounts before the financial statements are prepared.

Temporary Differences

Differences between the carrying amount of an asset or liability in the statement of financial position and the asset’s or liability’s tax base.