George H. Ruth takes a leave of absence from his job to work full time for a voluntary health and welfare entity for six months. Ruth fills the position of finance director, a position that normally pays $88,000 per year. Ruth accepts no remuneration for his work. How should this donated service be recorded? As contributed support of $44,000 and an expense of $44,000. As earned revenue of $44,000. As an expense of $44,000. No entries should be made.
George H. Ruth takes a leave of absence from his job to work full time for a voluntary health and welfare entity for six months. Ruth fills the position of finance director, a position that normally pays $88,000 per year. Ruth accepts no remuneration for his work. How should this donated service be recorded? As contributed support of $44,000 and an expense of $44,000. As earned revenue of $44,000. As an expense of $44,000. No entries should be made.
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 11MCQ
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Question
George H. Ruth takes a leave of absence from his job to work full time for a voluntary health and welfare entity for six months. Ruth fills the position of finance director, a position that normally pays $88,000 per year. Ruth accepts no remuneration for his work. How should this donated service be recorded?
- As contributed support of $44,000 and an expense of $44,000.
- As earned revenue of $44,000.
- As an expense of $44,000.
- No entries should be made.
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