Which entry would be the correct entry on the not-for-profit entity's books to record a donor's gift when the money is simply passing through the not-for-profit entity, it creates no direct benefit, and control of the assets has been relinquished by the donor? DEBIT CREDIT
A) Expense-charitable contribution Cash
B) Refundable advance to charity Cash
C) Cash Liability to beneficiary
D) Cash Refundable advance
E) Cash Contribution revenue

Question

Quizplus · Accepted Answer

When a not-for-profit entity receives a gift that is simply passing through to another beneficiary, it should record the cash received and a corresponding liability to the beneficiary, as the entity does not have control over the funds.

Which Entry Would Be the Correct Entry on the Not-For-Profit