Which entry would be the correct entry on the donor's books when the donor retains control of an asset, such as cash, which it contributes to a not-for-profit entity? DEBIT CREDIT
A) Expense-charitable contribution Cash
B) Refundable advance to charity Cash
C) Charitable pledge Cash
D) Cash Liability to beneficiary
E) Cash Refundable advance

Question

Quizplus · Accepted Answer

When a donor retains control of an asset like cash, it is considered a refundable advance to the charity, indicating that the charity is to return or to repay the advanced amount back to the donor. Therefore, the appropriate entry would be a debit to Refundable advance to charity and a credit to Cash.

Which Entry Would Be the Correct Entry on the Donor's