Which Entry Would Be the Correct Entry on the Donor's

question 37

Multiple Choice

Which entry would be the correct entry on the donor's books when the donor relinquishes control of an asset that it contributes to a not-for-profit organization? $$\begin{array} { l l } { \text { DEBIT } } & \text { CREDIT } \\\text { A) Expense-charitable contribution } & \text { Cash } \\\text { B) Refundable advance to charity } & \text { Cash } \\\text { C) Charitable pledge } & \text { Cash } \\\text { D) Cash } & \text { Liability to beneficiary } \\\text { E) Cash } & \text { Refundable advance }\end{array}$$

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Definitions:

Return on Investment

A measure used to evaluate the efficiency of an investment or compare the efficiency of several investments, calculated as the return divided by the cost of the investment.

Dividends

Distributions from a company to its shareholders, symbolizing a share of the company's earnings.

Constant

In mathematics or physics, a constant is a fixed value that does not change. In programming, it refers to an immutable value.

Supernormal Rate

Typically refers to an above-average rate of return on investment or growth.