A Not-For-Profit Private College in Virginia Created a Separate Foundation

question 105

Multiple Choice

A not-for-profit private college in Virginia created a separate foundation responsible for obtaining financial support from alumni and others.Foundation assets are used for the benefit of the college.Donations made to the foundation and subsequently transferred to the college should be:

• A)recognized as revenues by the foundation when received,and as revenues of the college when transferred.
• B)recognized as revenues by the foundation when received and as expenses by the foundation when transferred.
• C)recognized both as a change in its interest in the foundation and as revenues by the college when the donation is received by the foundation.
• D)recognized as an increase in net assets of the foundation and as revenues of the college when the donation is received by the college.

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