Under Which of the Following Circumstances Would a Not-For-Profit Organization's

question 23

Multiple Choice

Under which of the following circumstances would a not-for-profit organization's net assets be classified as temporarily restricted?

• A)donors impose stipulations on the use of resources that expire with the passage of time or that can be fulfilled by actions of the organization
• B)donors stipulate that resources must be held intact in perpetuity,but that the income from the gift may be used for any purpose desired by the organization's trustees
• C)the entity's board of directors requires that unrestricted resources be set aside for a specific purpose
• D)the bank lending money to the organization requires a percentage of maximum debt service to be set aside in a sinking fund

Understand the mechanics and effects of share transactions and acquisitions on subsidiary control and parent company investments.

Identify variables affecting investments in common and preferred stock between parent and subsidiary entities.

Distinguish between variable interest entities and their impact on consolidation.

Recognize the accounting treatment and adjustments for treasury and new share issues within consolidation.

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Definitions:

Louisiana Purchase

The 1803 acquisition of French territory by the United States, doubling the size of the country.

Dessalines

Jean-Jacques Dessalines was a leader of the Haitian Revolution and the first ruler of an independent Haiti under the 1805 constitution.

Commercial Sanctions

Penalties imposed by one country or a coalition of countries against another for economic reasons, often to discourage certain policies or activities.

Hamilton's Financial Programs

A series of measures proposed by Alexander Hamilton, the first U.S. Secretary of the Treasury, aimed at stabilizing the American economy after the Revolutionary War, including the establishment of a national bank.