Distinguish between "support" and "revenues from exchange transactions."
What will be an ideal response?
Support means revenue from contributions made without expectation of commensurate benefits for the donor, such as gifts, grants, and bequests. Revenues from exchange transactions, on the other hand, arise from bilateral exchange transactions in which the other party to the transaction receives benefit or other consideration for the resources provided. Examples of such revenues are membership dues, program service fees, sales of supplies or services, investment income, and realized gains on investment transactions.
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In the financial statements, dividends in arrears on cumulative preferred stock should be
A) disclosed in the footnotes. B) classified as an offset to retained earnings. C) classified as a liability either current or long term. D) classified as an offset to net income.
The Smoot-Hawley Tariff Act of 1930 has generally been associated with
a. falling tariffs. b. increases in the volume of trade. c. intensifying the worldwide depression. d. efforts to liberalize nontariff trade barriers.
Winston ordered fifty 7-inch tablets from One Tech Solutions, a wholesaler. The terms of the sale were cash on delivery. When Winston received the goods, he could see without inspection that they were fifty 9-inch tablets and not what he had ordered. Under these circumstances, ________.
A. Winston must accept the order but is entitled to a discount of the purchase B. Winston is entitled to receive the shipment without paying for it because of the seller's breach of contract C. Winston cannot reject the order because the terms of the purchase were cash on delivery D. Winston may reject the tablets without making any payment
The account type and normal balance of Prepaid Expense is
A) revenue, credit B) expense, debit C) liability, credit D) asset, debit