Chapter 19, Problem 19.24.16P

To determine

Concept Introduction:

Contribution Revenue for a not-for-profit organisation:

Revenue from contributions is the main source of income for a non-profit organisation. Contributions received can be restricted for use or can be unrestricted. Unrestricted contributions are those contributions for which user has not specified any restriction or purpose for which it should be used. Organisation can use unrestricted funds as per their discretion. Organisation should record revenue in the same year in which it received the contribution not in the year in which it spent the contribution as per donor specification.

:

If the statement, ‘An organization on receiving donation in this year which it could not use till next year record it as debit to cash and credit to deferred revenue in net assets without donor restrictions, is true or false.