Where Should Endowment Contributions Be Presented in the Financial Statements

question 33

Multiple Choice

Where should endowment contributions be presented in the financial statements of a not-for-profit organization under the deferral method?

• A)They are reflected in the notes to the financial statements.
• B)They are used to effect a reduction to a related expense account.
• C)They are reflected in the statement of changes in net assets.
• D)They are shown on the Statement of Cash Flows.

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Definitions:

Behaviour

The actions or reactions of an individual, group, or system in response to external or internal stimuli.

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Employee Retention

Strategies and practices aimed at keeping employees satisfied and engaged to reduce turnover rates within an organization.

Participant Reaction

The immediate feedback or feelings of individuals after engaging in a training or educational activity, often used as an initial measure of the program's effectiveness.