Which entry would be the correct entry on the not-for-profit entity's books to record a donor's gift when the donor retains power over the assets? DEBIT CREDIT
A) Expense-charitable contribution Cash
B) Refundable advance to charity Cash
C) Cash Liability to beneficiary
D) Cash Refundable advance
E) Cash Contribution revenue

Question

Quizplus · Accepted Answer

When a donor retains power over the assets, the not-for-profit entity should record the gift as a refundable advance, not as revenue, because the donor can reclaim the assets.

Which Entry Would Be the Correct Entry on the Not-For-Profit