At the beginning of 2020, a donor makes a documented promise to contribute $10,000 per year to a private NFP organization at the end of each of the years 2020, 2021, and 2022. The donor says the contribution may be used for any purpose, and the appropriate discount rate is 4%. The organization estimates that collections will be $9,000 per year for each of the three years.

When the promise is recorded at the beginning of 2020, the allowance for uncollectible contributions is credited for:

Select one:

A. $2,776 B. $5,024 C. $2,974 D. $3,000

The board of directors of a private NFP organization sets aside net assets for future payment of debt. How can this be displayed on the organization's statement of financial position? Select one:

A. A category of net assets with board restrictions

B. A category of net assets without donor restrictions

C. A category of net assets with donor restrictions

D. Reporting standards prohibit display of this information.

The American Museum of Natural History makes the following statement in the footnotes to its annual report: Hundreds of volunteers, including members of the Museum's Board of Trustees, have made significant contributions of time in furtherance of the Museum's mission.

How does the Museum most likely report these contributions in its financial statements?

Select one:

A. Reported as expenses and revenues in the statement of activities

B. Not reported

C. Reported as revenues only in the statement of activities

D. Reported as deferred inflows in the statement of financial position