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

question 40

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:

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An understanding of one's self, including their emotions, character, motivations, and longings.

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A characteristic of personality marked by an exaggerated feeling of self-worth, a strong desire for abundant attention and praise, and an absence of compassion for others.

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