Question

In a not- for- profit organization donations received for a particular purpose are recorded as? Temporary...

In a not- for- profit organization donations received for a particular purpose are recorded as?

  1. Temporary restricted
  2. Permanently restricted
  3. Unrestricted
  4. Temporary Unrestricted
  5. Frequently Unrestricted

In a not-for-profit organization, donations that cannot be spent, but the earnings can be spent as?

  1. Temporary Restricted
  2. Permanently Restricted
  3. Unrestricted
  4. Temporary Unrestricted
  5. Frequently Unrestricted
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Homework Answers

Answer #1

1.Not- for- profit organization donations received for a particular purpose:

These donations are temporarily restricted since after the particular purpose is fulfilled, the donation becomes unrestricted.For example , if the donation is for construction of a building , the donation becomes unrestricted after completion of the building.

a. Temporary Restricted

2.In a not-for-profit organization, donations that cannot be spent, but the earnings can be spent as?

In this case the donations are invested and the interests from the investments are used in perpetuity.These are classified as Permanently Restricted funds and the income from the funds are used for a particular activity or the organization in general.

b.Permanently Restricted

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