In Year 6, a donor gives $112,000 to a private not-for-profit entity to enable it to pay
Question:
In Year 6, a donor gives $112,000 to a private not-for-profit entity to enable it to pay the salary of a new doctor to be hired by the organization. Near the end of Year 7, this money is used for the stipulated purpose. Which of the following is true about the statement of activities for Year 7?
a. Net assets with donor restrictions increased by $112,000.
b. Net assets with donor restrictions did not change.
c. Net assets without donor restrictions goes up by $112,000 and also down by $112,000.
d. Net assets with donor restrictions goes up by $112,000 and also down by $112,000.
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Step by Step Answer:
C Because the money has now been spent as designated a 112000 reclassification ...View the full answer
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Mehwish Aziz
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Related Book For 
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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