Note: This Is a Kaplan CPA Review Question

question 92

Multiple Choice

Note: This is a Kaplan CPA Review Question
Gray College, a private not-for-profit institution, received a contribution of $100,000 for faculty research. The donation was received in 20X1 and $80,000 was spent in 20X1. As a result of these transactions, Gray College should report on its 20X1 statement of activities a:

• A) $100,000 increase in temporarily restricted net assets.
• B) $20,000 increase in temporarily restricted net assets.
• C) $80,000 increase in temporarily restricted net assets.
• D) $100,000 increase in unrestricted net assets.

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Definitions:

Primary Research

The process of gathering new data directly from original sources for a specific research purpose, as opposed to analyzing existing data.

Costly Research Efforts

Investment in research activities that require significant resources, both financial and time, often for complex or innovative investigations.

Analytical Report

A document that presents a detailed examination and analysis of a specific issue or problem.

Annual Report

A comprehensive report on a company's activities, financial performance, and strategy throughout the preceding year, intended for the stakeholders.