In Accordance with ASC 958,contributions from Donors Which Are to Be

question 88

Multiple Choice

In accordance with ASC 958,contributions from donors which are to be permanently invested should be disclosed on the statement of activities of a private university as an increase in:

• A) Permanently restricted net assets.
• B) Permanently restricted fund balance.
• C) Endowment fund balance.
• D) Deferred revenues.

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Definitions:

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security at a specified price before a certain date.

Employee Options

A form of employee benefit that gives employees the right to purchase company stock at a set price at a future date.

Debt Options

Financial instruments giving the holder the right, but not the obligation, to deal with debt under specified conditions.

Calls

Options contracts giving the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a specified time.