If a Donor Selects a Scholarship Recipient, and Then Donates

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 the donated cash as a contribution.
B) Record a revenue and when the award is used by the recipient, an expenditure for the same amount is recorded.
C) Record the scholarship awarded as a reduction of revenue.
D) Record a liability, as it is merely acting as an agent for the donation.