Note: This Is a Kaplan CPA Review Question

question 42

Multiple Choice

Note: This is a Kaplan CPA Review Question
In 20X1, Ellen College, a private not-for-profit institution, received a $100,000 grant for faculty research. The grant money was not spent until 20X2. For 20X1, Ellen College should report the contribution as:

• A) Temporarily restricted asset.
• B) Unrestricted revenue.
• C) Other operating revenue.
• D) Other non-operating revenue.

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Definitions:

Third Payment

This refers to the third installment of a series of payments toward a financial obligation.

Loan

Borrowed capital which is due to be paid back with interest.

Payments

Transactions made to fulfill obligations, such as bills, loans, or purchases.

Balance

The amount of money held in a financial account, calculated as the funds deposited minus any withdrawals or expenditures.