Which entry would be the correct entry on the donor's books when the donor relinquishes control of an asset, such as cash, which it contributes to a not-for-profit entity? DEBIT CREDIT
A) Expense-charitable contribution Cash
B) Refundable advance to charity Cash
C) Charitable pledge Cash
D) Cash Liability to beneficiary
E) Cash Refundable advance

Question

Quizplus · Accepted Answer

When a donor relinquishes control of an asset like cash to a not-for-profit entity, it is recorded as an expense for charitable contribution, with a debit to "Expense-charitable contribution" and a credit to "Cash".

Which Entry Would Be the Correct Entry on the Donor's