Where should be endowment contributions presented in the financial statements of a not-for-profit organization under the deferral method?

A) They are reflected in the notes to the financial statements.
B) They are used to effect a reduction to a related expense account.
C) They are reflected in the statement of changes in net assets.
D) They are shown in the statement of operations.

Deferral Method

An accounting practice where revenue or expenses are recognized at a later date than when they were initially incurred, aligning income with the periods in which the related cash flow occurs.

Financial Statements

Documents that report the financial activities and conditions of a business or entity, including the balance sheet, income statement, and cash flow statement.

Net Assets

The total assets of a company minus its total liabilities, representing shareholders' equity or owner's equity.