With respect to a not-for-profit that holds contributions for others, which of the following is true?
Multiple Choice
If the not-for-profit organization and beneficiary are financially interrelated, the transfer is recorded as an inter-entity transfer.
The not-for-profit records an asset restricted as to purpose.
If the not-for-profit organization has the ability to redirect the assets to ­another beneficiary, the transfer is recorded as a contribution.
Generally, if the not-for-profit organization agrees to transfer the assets to a specified beneficiary, the organization is deemed to be an agent and a liability is recorded.