How Should That Portion of Investment Income Earned from the Investment

question 35

Multiple Choice

How should that portion of investment income earned from the investment of endowment contributions that is required to be used to maintain the purchasing power of the endowment be accounted for if the not-for-profit organization uses the restricted fund method of reporting and has an endowment fund?

• A) As investment income in the general fund.
• B) As investment income in the endowment fund.
• C) As a direct increase in net assets in the general fund.
• D) As a direct increase in net assets in the endowment fund.

---

Definitions:

Palliative Care

A specialized area of healthcare that focuses on relieving and preventing the suffering of patients in advanced illness stages.

Emotional Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, thereby blocking external events from awareness.

Prognosis Of Death

An estimation of the likelihood of death, often given in the context of terminal illness or severe injury.

Grieving Process

The grieving process is the emotional and psychological journey that follows a loss, encompassing various stages of grief reactions.