Moore Art Association, a Not-For-Profit Entity, Received a Cash Gift

question 45

Multiple Choice

Moore Art Association, a not-for-profit entity, received a cash gift of $10 million.The association trustees decided to use the gift to establish a permanent endowment for the association.The income from the endowment would be used to provide grants to promising sculptors and students of the history of sculpture.The association should report the gift as an increase in

• A)Permanently restricted net assets.
• B)Temporarily restricted net assets.
• C)Unrestricted net assets.
• D)Board restricted net assets.

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Will

A legal document, not valid until the testator’s death, expressing the testator’s intent in the distribution of all real and personal property.

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