A Donor Made a Cash Contribution of $90,000 to a Private

question 38

Multiple Choice

A donor made a cash contribution of $90,000 to a private not-for-profit organization for the purpose of acquiring a building. The not-for-profit organization properly recorded the gift of cash as temporarily restricted revenue. When the building is acquired, the organization should:

• A) Record the building as permanently restricted.
• B) Record the building as temporarily restricted.
• C) Record the building as either unrestricted or temporarily restricted, as long as a consistent policy is followed.
• D) Show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets.

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Definitions:

Sample Groups

Subsets of a population selected to participate in a study, allowing for inferences about the whole population.

Factor

Another word for the independent variable of interest.

ANOVA

Analysis of Variance, a statistical method used to compare means among three or more groups to see if at least one is different.

Mean Square

A statistical measure used to describe the dispersion of values in a data set, typically calculated by dividing the sum of the squares of deviations from the mean by the number of observations.