last day of the accounting period
QUESTION
On the last day of the accounting period, a donor makes a permanently restricted donation of $1 million. How would this transaction affect the financial statements that will be prepared (vis-a-vis last periods statements)?A. the balance sheet would be affected, and the statement of operations would
If $1 million is added at the end of the accounting period, the balance sheet would be affected and the statement of operations would be unaffected because this donation would cause cash
inflow which results in increase in cash account and increase in stockholders equity. Therefore, the correct option is (A)
ANSWER:
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