Author Question: A government establishes a Permanent Fund to account for a donation. The earnings from the donation ... (Read 89 times)

azncindy619 · **on:** Jul 5, 2018

A government establishes a Permanent Fund to account for a donation. The earnings from the donation are to be used to purchase books for the library.

How should the donation be reported in the Permanent Fund statement of revenues, expenditures and changes in fund balance?
A. Special Item.
B. Revenue.
C. Other financing source.
D. Capital contribution.

Question 2

Computer equipment used in the business office of a not-for-profit organization was sold for 9,000 . The original cost of the equipment was 21,000, and accumulated depreciation at the date of the sale was 15,000 .

How will the gain be reported?
a. Not-for-profit organizations do not recognize gains.
b. Unrestricted gain of 3,000
c. Temporarily restricted gain of 3,000
d. Permanently restricted gain of 3,000
e. Temporarily restricted revenue of 9,000