The Transactions Described in the Following Questions Occurred in a Voluntary

question 31

Multiple Choice

The transactions described in the following questions occurred in a voluntary health and welfare organization during the year ended December 31, 20X8. For each transaction, indicate its effect(s) on the organization's statement of activities prepared for the year ended December 31, 20X8. List all effects of transactions affecting more than one class of net assets. Indicate your choice(s) by entering the letter corresponding to the effects listed here:
Effe cts of Transactions on Statement of A ctivities
-A gain was realized from the sale of securities which were permanently invested.The gain is restricted as to use.

• A)Increases unestricted net assets.
• B)Decreases unrestricted net assets.
• C)Increases temporarily restricted net assets.
• D)Decreases temporarily restricted net assets.
• E)Increases permanently restricted net assets.
• F)Decreases permanently restricted net assets.
• G)Transaction is not reported on the statement of activities.

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Definitions:

Force Fit

A type of interference fit where components are pressed together using high force, resulting in a very tight fit with no movement between parts.

Hole

An opening through a solid body or surface, typically circular.

Allowances

The intentional difference between the maximum material limits of mating parts to ensure a certain type of fit.

Tolerances

The permissible limits or variations in dimensions, properties, or conditions of an object or system, allowing for proper function without exact precision.