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.

---

Definitions:

Market Power

The power of a firm to control the market price of its product. A monopoly has the greatest degree of market power.

Consumer Data

Information relating to individuals who purchase or show interest in products and services, including personal details, buying habits, and preferences.

Antitrust Violation

Instances where businesses or individuals engage in practices that restrict competition, violate established antitrust laws, and harm consumers or the economy.

Restraints Of Trade

Legal restrictions placed on business practices that can limit competition or manipulate markets.