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How Is the Deferral Method of Accounting for Contributions to Not-For-Profit

Question 25

Multiple Choice

How is the deferral method of accounting for contributions to not-for-profit organizations applied in the case of unrestricted,endowment and restricted contributions?


A) Unrestricted and restricted contributions must be matched against expenses because of the matching principle.
B) Net assets maintained permanently in endowments.
C) Unrestricted Net Assets
D) Net assets invested in operations.

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