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

question 50

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.

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Definitions:

Supply Chain Coordination

The practices and processes aimed at integrating activities and optimizing efficiencies across the supply chain to better serve the end customer.

Sell-Through

The percentage of units sold versus the number of units that were available to be sold, typically used to evaluate the demand and success of a product.

Sell-In

The process of selling products to retailers or distributors, as opposed to the final consumer.

Manufacturer Sales

The total revenue generated by a company from the sale of goods produced.