Exchange transactions in a not-for-profit organizations are classified as...

Question

BlackTom AI · Accepted Answer

Question restatement: Exchange transactions in a not-for-profit organizations are classified as...

Option 1: a without donor restriction (unrestricted)
- This option aligns with the typical treatment of exchange transactions in not-for-profit accounting. In exchange transactions, the organization provides a good or service and receives consideration in return. Because there is no externally imposed donor-imposed restriction on the funds received for this transaction, the resulting revenue is generally recorded as unrestricted (without donor restrictions). The focus is on the reciprocal nature of the transaction rather than on meeting donor-imposed goals, so the funds are not placed into temporarily or permanently restricted categories.

Option 2: with donor restriction (temporarily or permanently restricted)
- This option is not appropriate for exchange transactions. Donor restrictions apply to contributions from donors that specify how the funds must be used or when they must be released. Exchange transactions do not come from a donor-imposed restriction; they represent a market-type transaction where the organization earns revenue by providing goods or services. Therefore, labeling exchange-transactions as temporarily or permanently restricted would misrepresent the source and nature of the inflow, since there is no donor-imposed timetable or use restriction attached to the exchange.

Additional nuances to consider: In not-for-profit accounting, distinguishing between exchange transactions and contributions is key. Contributions with donor-imposed restrictions are recorded as temporarily or permanently restricted net assets until the restrictions are satisfied. However, exchange transactions result in unrestricted revenue because the funds received are not subject to donor-imposed restrictions and arise from the entity’s ongoing operations or service provisioning.

In summary, the correct classification for exchange transactions is unrestricted (without donor restriction), since the transaction reflects a reciprocal exchange rather than a donor-imposed restriction on the use of funds.

SP25-BL-SPEA-V246-multisection Interactive Reading 4

Exchange transactions in a not-for-profit organizations are classified as...

查看解析

登录即可查看完整答案

类似问题

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单