During the Current Year, Jones University Received a $50,000 Gift

question 5

Multiple Choice

During the current year, Jones University received a $50,000 gift from an alumnae who specified that it must be used to pay travel costs for faculty to attend health care conferences in foreign countries.During the year the university spent $8,000 to support travel to a health care conference in Italy.The $8,000 disbursement will cause a NET decrease in which class of net assets?

• A)Unrestricted net assets.
• B)Temporarily restricted net assets.
• C)Permanently restricted net assets.
• D)Cannot be determined. Use the following information to answer #6 and #7.
• Kale Hospital, a not-for-profit entity, received a pledge from a donor in support of a fund raising effort by the Hospital to finance construction of a new facility for cancer treatment.The donor promised to pay $1 million in equal annual installments of $100,000 over the next 10 years.The present value of the gift at the risk-free interest rate is $736,000.

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Definitions:

Third-Party Vendor

An external organization that provides goods or services to a primary organization without having direct control or ownership.

Pricing Structure

Describes the strategy and methodology used by companies to define prices for their products or services, including different pricing tiers, discounts, and offers.

Buy-Side Marketplace

B2B model in which organizations buy needed products or services from other organizations electronically, often through a reverse auction.

Electronic Exchange

A platform or system that facilitates the trading of financial instruments, commodities, or other products through electronic systems without the need for physical trading floors.