The Transactions Described in the Following Questions Occurred in a Voluntary

question 77

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:
Effects of Transactions on Statement of Activities
-The governing board designated assets for plant expansion.

• A)Increases net assets with donor restrictions.
• B)Decreases net assets with donor restrictions.
• C)Increases net assets without donor restrictions.
• D)Decreases net assets without donor restrictions.
• E)Transaction is not reported on the statement of activities.

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Definitions:

Assembly Department

A section within a manufacturing process where components are joined together to form a finished product.

FIFO Method

An inventory valuation method standing for "First In, First Out," assuming that the first items purchased or produced are the first ones sold.

Equivalent Units

A term used in cost accounting to represent a quantity of production expressed in terms of fully completed units, used in calculating the cost per unit during a period.

First Processing Department

The initial stage or department in a manufacturing or production process where raw materials begin their transformation into finished products.