Under the Deferral Method, How Should Contributions Received in the Current

Multiple Choice

Under the deferral method, how should contributions received in the current year, but restricted for operating expenses for one or more future periods, be reported in the current year?

A) As deferred revenue on the balance sheet
B) As revenue in the statement of operations
C) As a direct increase to net assets
D) As a reduction of operating expenses on the statement of operations