[Sherrid]

Becker Question –

I don’t understand why a 100,000 contribution received in 2001 and spent in 2001 is included in the

NFP’s 2002 financial statements? Please help….I need to pass this beast!

[Anonymous]

Classic trick…they have a June 30th 20X1 year end. So the next year will be from July 1 20×1 – June 30th 20×2. That's why it's reported as in increase (when recognized as revenue) and a decrease in net assets (when the expense/reduction in net assets is recorded).

Good luck studying!

[Author]

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