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Unformatted text preview: 7. 2. A not-for-profit organization receives a restricted gift. When, and in which type of fund, should it recognize the revenue? When, and in which type of fund, should it recognize the related expense? What is the reason for the apparent inconsistency between the fund types in which the revenues and expenses are reported? 8. The revenue should be recognized in a temporarily restricted fund in the period when it is received. The related expense should be recognized in the current operating fund when the restriction is met or expired. The reason for the inconsistency between the fund types is due to the restricted nature of the gift, and that the expenditure of the resource is often not recognized in the same accounting period. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32....
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- Spring '11