A nongovernment ONPO incurred expenses for its public service programs. The ONPO had resources available from prior
Question:
A nongovernment ONPO incurred expenses for its public service programs. The ONPO had resources available from prior year donations that were restricted by donors to finance expenses for these public service programs. Which of the following is (are) true?
a. The ONPO should recognize the expenses as decreases in temporarily restricted net assets—because they are financed from temporarily restricted net assets.
b. The ONPO should recognize contributions revenue in the current year as an increase in unrestricted net assets.
c. This transaction will reduce temporarily restricted net assets.
d. The ONPO should recognize contributions revenue in the current year as an increase in temporarily restricted net assets.
e. Two or more of the preceding statements are true. Specify the correct choices.
Step by Step Answer:
The correct choice is e Two or more of the preceding statements are true Explanation In this scenari...View the full answer
Governmental And Nonprofit Accounting Theory And Practice
ISBN: 9780132552721
9th Edition
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,
