The Transactions Described in the Following Questions Occurred in a Voluntary

question 92

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
-Acquired equipment with all of the contributions previously received from donors for equipment purchases.

• 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:

GDP

Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Malthusian Theory

A theory proposed by Thomas Malthus suggesting that population growth will outpace agricultural production and lead to widespread poverty and famine.

Geometric Progression

A sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the common ratio.

Arithmetic Progression

A sequence of numbers in which each term after the first is obtained by adding a constant, known as the common difference, to the preceding term.