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.

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Definitions:

Subliminal Stimulation

The act of influencing an individual's mind below the threshold of conscious perception.

Shoplifting

The act of stealing goods from a store while pretending to shop.

Soundtrack

The audio component, including music, dialogue, and sound effects, accompanying a movie, game, or video.

Absolute Thresholds

The minimum stimulus intensity required for a stimulus to be detected at least 50% of the time.