Author Question: A debit balance in which of the following accounts would indicate a likely error? a. Salaries ... (Read 25 times)

gbarreiro · **on:** Jul 5, 2018

A debit balance in which of the following accounts would indicate a likely error?
a. Salaries Expense
b. Notes Payable
c. Edgar Martin, Drawing
d. Supplies

Question 2

A nongovernment not-for-profit organization received a cash donation of 100,000 restricted for a specific operating purpose. Only 20,000 of expenses related to the specific operating purpose was incurred during the current year.

How should this activity be reported be in the statement of activities?
A. Expenses in changes in unrestricted net assets, 20,000.
B. Expenses in changes in temporarily restricted net assets, 20,000.
C. Net assets released from restrictions in the permanently restricted assets, 20,000.
D. Expenses and net assets released from restriction in temporarily restricted net assets, 20,000.