When a company is the recipient of a donated asset, the account credited may be a
A) paid-in capital account.
B) revenue account.
C) deferred revenue account.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

When a company receives a donated asset, it should be recorded as revenue since it is an increase in economic resources. Therefore, the account credited should be a revenue account. The other options (choice A and C) are not appropriate in this scenario.

When a Company Is the Recipient of a Donated Asset