How Should Investment Income Earned from the Investment of Endowment

question 28

Multiple Choice

How should investment income earned from the investment of endowment contributions be accounted for if the not-for-profit organization uses the restricted fund method of accounting and the use of the investment income is restricted to a specific purpose for which the not-for-profit organization has a restricted fund?

• A) As investment income in the endowment fund
• B) As a deferred contribution
• C) As investment income in the general fund
• D) As investment income in the specific restricted fund

---

Definitions:

Paired-Choice Votes

Paired-choice votes involve voters making choices between pairs of candidates or options rather than voting for a single option amongst many.

Marginal Benefit

The incremental gain in happiness or utility a consumer achieves from purchasing an additional unit of a good or service.

Vote Trading

The practice of exchanging votes between members in different districts or on different issues to achieve a desirable outcome for all involved parties.

Public Project

A government-funded initiative designed to provide public goods or services, often aimed at serving the community or improving public welfare.