<span>In the given choices
above, the type of account that has the lowest liquidity is the certificate of
deposit. This is a type of account that is considered to be a time deposit and
is usually a risk free account.</span>
It is a <u>false statement</u>.
<u>Explanation</u>:
A contribution is recognized at its fair market value considering the time period the contribution is received or unconditionally given. The timing or value of the recognition will not be affected by donor-imposed restrictions.
Contribution revenue is the amount available for contribution after the direct cost that is subtracted from expenses. The balance amount is available to pay for the business during a reporting period.
In the above scenario, the contribution is received for the purchase of playground equipment.
First let us identify if the asset is a gain
or loss. An asset is a gain if it contributes to the banks overall finance while
it is a loss if it is a cost directly or indirectly.
Deposits of $300 million = Gain (+)
Reserves of $20 million = Gain (+)
<span>Purchased government bonds worth $300 million
= Loss (-) ---> This entails
cost</span>
Selling bank’s loans at current market value
of $600 million = Gain (+)
Therefore adding up everything to get the banks net worth:
Stealth banks net worth = $300 M + $20 M - $300 M + $600 M
<span>Stealth banks net
worth = $620 million</span>