Question
A $100,000 gift was received by Group Home Projects, a nongovernmental not-for- profit organization. Group's board of directors stipulated that this gift must be invested
A $100,000 gift was received by Group Home Projects, a nongovernmental not-for-
profit organization. Group's board of directors stipulated that this gift must be
invested for a period of 4 years, with the income to be used for general operations.
How should the gift be reported in Group Home's statement of activities?
a. Increase in net assets without donor restrictions of $25,000 and donor-restricted support of $75,000.
b. Deferred revenue.
c. Increase in net assets with donor restrictions.
d. Increase in net assets without donor restrictions.
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
