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Music Lovers Foundation, a Not-For-Profit Governed by an Independent Board

Question 38

Multiple Choice

Music Lovers Foundation, a not-for-profit governed by an independent board, was founded to support the Northern State University Choir until such time as the state legislature shall adequately fund the choir.When the Choir is adequately funded by appropriation the Foundation may direct resources to other music projects that it deems acceptable.When Music Lovers accepts a contribution from a donor it should debit cash and/or other assets and credit


A) Unrestricted revenue.
B) Temporarily restricted revenue.
C) Liability.
D) It should not make an entry.

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