The Following Gifts Are Received in Year One by a Not-For-Profit

question 40

Multiple Choice

The following gifts are received in Year One by a not-for-profit organization:
I. $2,000 specified by the donor to be used to pay salaries.
II. $10,000 for new conference room furniture.
III. $5,000 to be held for one year before being expended.
The salaries are paid in Year Two and the conference room furniture is purchased in Year One.
-How much should be reclassified on the Statement of Activities in Year Two from the Temporarily Restricted column to the Unrestricted column?

• A) $2,000.
• B) $5,000.
• C) $7,000.
• D) $10,000.
• E) $12,000.

---

Definitions:

Autonomy Versus Shame

A stage in Erik Erikson's theory of psychosocial development where toddlers learn to exercise their will and do things for themselves, or they doubt their abilities.

Heredity And Environment

The interplay between genetic predispositions and external factors that shapes individuals' traits, behaviors, and development.

Generativity Versus Self-Absorption

A stage in Erik Erikson’s theory of psychosocial development where middle-aged adults face the challenge of contributing to the next generation or becoming self-centered.

Industry Versus Inferiority

A stage in Erik Erikson's theory of psychosocial development, typically occurring during childhood, where success fosters a sense of competence, while failure results in feelings of inferiority.