Author Question: In response to a fund-raising campaign, an electric utility provides free electricity to a ... (Read 63 times)

Pineapplelove6 · **on:** Jul 5, 2018

In response to a fund-raising campaign, an electric utility provides free electricity to a not-for-profit entity. How should the not-for-profit entity report this gift in its statement of activities?

a. It should not be reported in the statement.
b. It should not be reported on the face of the statement, but should be disclosed in the notes.
c. It should be reported at its fair value as a revenue and as an expense.
d. The entity may choose either to not report it or to report it at fair value as a revenue and as an expense.

Question 2

In which journal is the return of supplies purchased on account recorded?
a. general journal
b. cash receipts journal
c. cash payments journal
d. purchases journal