A Private School Is Given $40,000 to Permanently Endow One

question 19

Multiple Choice

A private school is given $40,000 to permanently endow one of its education programs. A debit of $40,000 should be made to

• A) Cash.
• B) Unrestricted cash.
• C) Temporarily restricted cash.
• D) Cash restricted for endowment.

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Definitions:

Increasing Costs

This refers to a situation where the costs of production increase as the output level increases, often seen in industries with limited resources.

Production Efficiencies

Occurs when a firm or economy can no longer produce additional amounts of a good without lowering the production level of another product.

Trade Surplus

A situation where a country's exports exceed its imports during a specific period, reflecting a positive balance of trade.