Income Earned on Restricted Endowment Resources Should​

question 45

Multiple Choice

Income earned on restricted endowment resources should​

• A)​remain in the endowment fund.
• B)​be transferred and recorded directly in the unrestricted fund.
• C)​be recorded in the endowment fund with a liability established for future transfer to an unrestricted fund.
• D)​transferred immediately and recorded directly to the fund the donor designate to receive the income/benefit.

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Definitions:

Price Discrimination

The approach of a single supplier offering the same or similar products or services at diverse pricing points in separate markets.

Consequences

Consequences refer to the results or outcomes of actions, decisions, or policies, which can be foreseen or unforeseen, and beneficial or detrimental.

Fair-Return Price

A price that covers production costs and allows for a normal profit margin, considered equitable for both producers and consumers.

Regulating Monopolies

Government policies or laws designed to control or limit the power of monopoly firms to ensure fair competition and protect consumers.