How Should Investment Income Earned from the Investment of Endowment

question 57

Multiple Choice

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

• A) As investment income.
• B) As a deferred contribution.
• C) As a direct increase in net assets.
• D)As donation revenue.

---

Definitions:

Employee Voice

Refers to the ways employees can express their opinions, concerns, or suggestions regarding their work or workplace conditions, typically aiming to improve organizational effectiveness.

Positive Climate

A work environment characterized by support, mutual respect, and a positive attitude among members.

Conscientious

Refers to a personality trait characterized by being diligent, careful, thorough, organized, and responsible in one's work or personal affairs.

Employees

Individuals who are hired by a business or organization to perform specific duties in exchange for compensation.