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Sati [7]
3 years ago
5

True or False: Contributions received in a prior period and restricted by the donor for construction of a building were reported

as increases to "temporarily restricted net assets" in the period received. When the building is constructed in a subsequent period a not-for-profit would report "contributions" for the amount released from restrictions.
Business
1 answer:
noname [10]3 years ago
7 0

Answer:

The correct answer is False.

Explanation:

If the contribution is for the subsequent acquisition of assets, in the same way as in the previous point it is carried as deferred income and amortized in line with the depreciation of the acquired asset, as amortization of deferred contributions.

Permanently restricted contributions are taken to this category in net assets and correspond to those that are represented in assets that must be kept in perpetuity.

Unrestricted contributions used in the year are taken directly to income; if they are not used in the year they are taken as part of the net assets without restrictions.

If the board of directors or equivalent body decides to allocate an unrestricted contribution item for a special purpose, it is carried as an internally restricted net asset.

Contributions with temporary restrictions are carried as part of the temporarily restricted net asset.

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Sinking fund bonds: Multiple Choice Require equal payments of both principal and interest over the life of the bond issue. Requi
alexandr1967 [171]

Require the issuer to set aside assets to pay bonds at maturity.

Bonds that require the issuer to set aside a pool of assets used only to repay the bonds at maturity.

<h3>What is Sinking Fund Bond ?</h3>

A sinking fund is maintained by companies for bond issues, and is money set aside or saved to pay off a debt or bond.

  • Bonds issued with sinking funds are lower risk since they are backed by the collateral in the fund, and therefore carry lower yields.

  • example may be a company issuing $1 million of bonds that are to mature in 10 years. Given this, it creates a sinking fund and deposits $100,000 yearly to make sure that the bonds are all bought back by their maturity date

Learn more about Sinking Fund Bond here:

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8 0
1 year ago
What is the four parts of SWOT analysis
forsale [732]
<span>strengths, weaknesses, opportunities and threats.</span>
4 0
3 years ago
Suppose Cook Plus manufactures cast iron skillets. One model is a​ 10-inch skillet that sells for $ 22. Cook Plus projects sales
amid [387]

Answer:

Production budget = 835

Explanation:

<em>T</em><em>he production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories.  </em>

Production = Sales budget + closing inventory - opening inventory

Inventory at the end of July = 40%×650= 260

Opening inventory = 75

Sales budget = 650

Production budget = 650+ 260  - 75= 835

Production budget = 835

3 0
3 years ago
Do the following activities contribute to US GDP in 2020? Explain why or why not? In which year do these activities contribute t
ale4655 [162]

Answer:

Explained below.

Explanation:

In option (a) no it does not contribute to the US GDP in any year. The transaction appears in expenditure as an increase in consumption and a decrease in net exports that offset. According to option (b) yes it contributes to US GDP in 2013. The transaction appears as an increase in investment (increase in inventory). In 2014, the transaction appears as an increase in net exports offset by a decrease in investment. According to option (c), the transaction appears in expenditure as an increase in consumption in 2014 offset by a decrease in net exports. Option (d) represents the transaction appears as an increase in investment (increase in inventory). In 2014, the transaction appears as an increase in consumption offset by a decrease in investment. According to option (e) yes, it contributes $1000 to US GDP in 2014. The $6000 purchase price exceeds the price paid by the used car dealer. The difference represents value added by the dealership - this is a service that should be counted as part of GDP.

8 0
3 years ago
In 2019, Alliant Corporation acquired Centerpoint Inc. for $548 million, of which $98 million was allocated to goodwill. At the
ohaa [14]

Answer:

$48 million

Explanation:

In this scenario, we compare the values between book value including goodwill and the fair value of machinery, the difference would be the loss on impairment of the asset

In mathematically,  

= Book value including goodwill - fair value  

= $450 million - $402 million

= $48 million

All other information which is given is not relevant. Hence, ignored it

6 0
3 years ago
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