A Donor Gave $60,000 to a Nongovernmental, Not-For-Profit Charity with Instructions

question 152

Multiple Choice

A donor gave $60,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to Sam Smith, an individual who lost his home in a fire. The not-for-profit would:

• A) Record the $60,000 cash and credit a liability.
• B) Record the $60,000 cash and credit temporarily restricted revenue.
• C) Do either a or b, depending upon the policy of the not-for-profit.
• D) Not record the transaction, because the money is going directly to the intended recipient.

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Definitions:

Brain Complexity

Refers to the intricate structure and dynamic processes of the brain that enable sophisticated functions such as thought, emotion, and decision-making.

Cortical Areas

Regions of the cerebral cortex of the brain, each specializing in various functions such as sensory processing, motor control, and cognitive abilities.

Broca's Area

A region in the frontal lobe of the dominant hemisphere of the brain with functions linked to speech production.

Prefrontal Cortex

The anterior part of the frontal lobes of the brain, involved in complex behaviors including decision making, planning, and moderating social behavior.