The Increase in Unrestricted Net Assets in 2016 as a Result

question 25

Multiple Choice

The increase in unrestricted net assets in 2016 as a result of the fund-raising drive is

• A) $1,200,000.
• B) $1,050,000.
• C) $800,000.
• D) $250,000.

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Definitions:

Compounded Monthly

interest earned or paid is calculated and added to the account balance every month.

Promissory Note

A written promise to pay a specified amount of money to a certain individual or entity at a specified time or on demand.

Compounded Annually

Interest on an investment or loan that is calculated once a year and added to the principal amount, allowing the investment to grow at an increasing rate.

Discounting

The process of determining the present value of a payment or a stream of payments to be received in the future, by applying a discount rate.