During the Year, Dakota University's Board of Trustees Established a $500,000

question 23

Multiple Choice

During the year, Dakota University's board of trustees established a $500,000 fund to be retained and invested for scholarship grants.The fund earned $30,000, which had not been distributed by December 31.What amount should Dakota report in a Board designated quasi endowment fund's net assets at December 31?

• A)$0
• B)$30,000
• C)$500,000
• D)$530,000

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Definitions:

Equivalent Units

A term used in cost accounting to represent a partial completion of a product, measured in units of a fully completed product.

Weighted Average Method

An inventory costing method that assigns an average cost to each item based on the total cost of goods available for sale and the number of items available.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of complete units with regards to work done or costs incurred.

Beginning Inventory

The value of a company's inventory at the start of an accounting period.