During the Year, a State-Owned University Received a $5 Million

question 28

Multiple Choice

During the year, a state-owned university received a $5 million gift. The donor specified that the principal of the gift must be held intact for 3 years, but the earnings from the gift can be used to support technology improvements in the college of business. At the end of the 3 years, the donor together with the university president and the college dean will decide how the $5 million gift can be used. The university will report the gift in what type of fund?

• A) Permanent fund.
• B) Private-purpose trust fund.
• C) Plant fund.
• D) Special revenue fund

Understand the effects of financial transactions on the accounting equation.

Recognize the correct presentation of financial statements.

Distinguish between the various types of transactions and their impact on a company’s financial position.

Identify the characteristics of different forms of business entities.

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Definitions:

Intrapersonal

Relates to internal thought processes, personal values, and self-reflection within an individual.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Affects

Refers to the experience of feeling or emotion in psychological context.

Social Networks

The structures made up of individuals or organizations that are connected by one or more types of interdependencies, such as friendships, kinships, common interests, financial exchanges, or relationships of beliefs.