If a Donor Selects a Scholarship Recipient,and Then Donates Cash

Multiple Choice

If a donor selects a scholarship recipient,and then donates cash to a ballet school to fund that scholarship,the ballet school would:

A) Record a liability, as it is acting as an agent for the donation.
B) Record the donated cash as a contribution.
C) Not record the donation at all, but disclose it in the notes.
D) Record the scholarship awarded as a reduction of revenue.