A not-for-profit organization received a donation temporarily restricted as to use. Thedonated amount was later spent in accorda
nce with the restriction. In which category(ies) of netassets should the related revenues and expenses be recognized?Unrestricted:_______Temporary: Restricted:______
the correct answer to the following question is - Unrestricted - Expenses, and Temporary restricted - Revenues.
Explanation:
NPO ( Not for profit organization ) is that type of organization which can be formed by charities , cooperatives or other voluntary organizations, for the purpose of serving the public service objective or any other educational or professional objective. Here the trustees of these organizations don't expect a repayment on the investment that they have made in the NPO . When a NPO receives donations which are temporary to use , there expenses would be coming under unrestricted category of net assets and revenues would come under Temporary restricted category of net assets.
If a drought ruins a significant amount of the coffee crop,
it is expected that the price of the coffee will rise. It is because if there
are less products or the less it produces, it causes the product to rise
because the product will be of demand by the consumers.
Laissez faire model was inspired by John Stuart Mill's book "Principles of Political Economy" (1848). This model states that the government should not be heavily involved in the market, and should have a hands off approach.
