Choice "D" is correct. The Amer Benevolent Society received a donation from a philanthropist for the benefit of a specific beneficiary and the Amer Benevolent Society has no variance power (discretion) relative to the use of the contribution. Receipt of this cash is not a contribution received, it is a liability.
Choice "b" is incorrect. The contribution received is subject to a specific donor-imposed restriction and is not unrestricted. In addition, since the not-for-profit entity has no variance power, the receipt is accounted for as a liability, not as a contribution on the Statement of Activities.Choice "a" is incorrect. Although the Amer Benevolent Society received a restricted contribution whose restriction can be satisfied by the purchase of furniture, a temporary restriction, the Society has no variance power over the resources and would therefore account for the transaction as a liability on its Statement of Financial Position, not a contribution on its Statement of Activities.
Choice "c" is incorrect. Although the contribution received is subject to a restriction, the restriction can be satisfied by the Amer Benevolent Society by the expenditure of the contribution. The restriction is not permanent, it is temporary.