If a Donor Selects a Scholarship Recipient, and Then Donates

question 63

Multiple Choice

If a donor selects a scholarship recipient, and then donates cash to a ballet school to fund that scholarship, the ballet school would:

• A) Record the donated cash as a contribution.
• B) Record a revenue and when the award is used by the recipient, an expenditure for the same amount is recorded.
• C) Record the scholarship awarded as a reduction of revenue.
• D) Record a liability, as it is merely acting as an agent for the donation.

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Definitions:

Japanese School

Educational institutions in Japan, characterized by their rigorous curriculum, uniform requirements, and emphasis on discipline and group harmony.

Working Hard

The act of putting in a great deal of effort and endurance towards achieving a goal or completing tasks.

Contextual Intelligence

The ability to understand the limits of our knowledge and to adapt that knowledge to an environment different from the one in which it was developed.

Practical Application

The use of theoretical knowledge in a real-world context, demonstrating how concepts or techniques can be employed effectively.