The Transactions Described in the Following Questions Occurred in a Voluntary

question 68

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
-Received a multi-year pledge,with cash being received this year and for the next 4 years.Donors did not place any use restrictions on how the pledges were to be spent.

• 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.

Understand the concept and calculation of financial ratios and their importance in financial analysis.

Recognize the objectives and outcomes of an external audit and the role of independent auditors.

Understand disclosure requirements and the significance of notes to financial statements.

Understand the importance of tone in delivering bad news to customers.