Which Entry Would Be the Correct Entry on the Not-For-Profit

question 54

Multiple Choice

Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when power over the assets has been retained by the donor? $\begin{array} { l l }\text {DEBIT}&\text {CREDIT}\\ \text { A) Expense-charitable contribution } & \text { Cash } \\ \text { B) Refundable advance to charity } & \text { Cash } \\ \text { C) Cash } & \text { Liability to beneficiary } \\ \text { D) Cash } & \text { Refundable advance } \\ \text { E) Cash } & \text { Contribution revenue } \end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D
• E) Option E

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Equivalent Annual Cost

A financial analysis tool used to compare the cost effectiveness of two or more alternatives with different lifespans expressed on an annual basis.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Equivalent Annual Cost

A financial metric used to compare the cost-efficiency of different investments or projects with different lifespans, by calculating their annual costs.