A Voluntary Health and Welfare Organization Received a $300,000 Contribution

question 76

Multiple Choice

A voluntary health and welfare organization received a $300,000 contribution on April 15,2009,from a donor who stipulated the donation be invested permanently in stocks and bonds.The donor further stipulated earnings from the investments be spent according to the wishes of the governing board of the voluntary health and welfare organization.Earnings from the investments for the year ended June 30,2009,amounted to $6,000.How would the voluntary health and welfare organization report this information for the year ended June 30,2009?

• A)Increase in permanently restricted net assets of $306,000.
• B)Increase in permanently restricted net assets of $300,000,and in temporarily restricted net assets of $6,000.
• C)Increase in permanently restricted net assets of $300,000,and in unrestricted net assets of $6,000.
• D)Increase in permanently restricted net assets of $300,000,and in board-designated net assets of $6,000.

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Definitions:

Labor Tasks

Specific duties or work activities performed by employees as part of their job responsibilities.

Lean Manufacturing

An organized approach to reducing waste in a production system without compromising efficiency.

Make to Stock

A production strategy where products are manufactured in anticipation of demand, based on forecasts, and stored in inventory.

Pull Manufacturing

A production strategy where work is only initiated as per demand, aiming to reduce inventory levels and increase efficiency.