A Not-For-Profit University Maintained as Endowment of $800,000, the Income

question 38

Multiple Choice

A not-for-profit university maintained as endowment of $800,000, the income of which was restricted for an annual conference on international relations.In a particular year, the market value of the endowment increased by $80,000.The university held a conference on international relations at a cost of $86,000.The university should report

• A)No revenue and unrestricted expenses of $86,000
• B)Unrestricted revenues of $80,000 and unrestricted expenses of $86,000
• C)Temporarily restricted revenues of $80,000, temporarily restricted expenses of $80,000 and unrestricted expenses of $6,000
• D)Permanently restricted revenues of $80,000 and unrestricted expenses of $86,000

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