1) Which of the following terms is used to indicate that a donor provided a...
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Accounting
1) Which of the following terms is used to indicate that a donor provided a gift with explicit instructions that the gift is to be used for a specific purpose by the not-for-profit but the entire amount may be spent right away?
A) Board-designated net assets.
B) Net assets without donor restrictions.
C) Endowment assets.
D) Net assets with donor restrictions.
2) A not-for-profit (NFP) organization acting as a financial intermediary receives a contribution. Under the FASB Codification the NFP would be most likely to recognize the contribution as a liability under which of the following situations?
A) The NFP has variance power.
B) The NFP is acting as an agent, receiving the contribution on behalf of another organization.
C) The NFP is financially interrelated with the organization on whose behalf it received the contribution.
D) The NFP has a 51 percent interest in the organization on whose behalf it received the contribution.
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