An Alumnus Donates Securities to a Private College and Stipulates

question 17

Multiple Choice

An alumnus donates securities to a private college and stipulates that the principal be held in perpetuity and income from the securities be used for faculty travel. Dividends received from the securities should be recognized as increases in:

• A) Endowments.
• B) Net assets without donor restrictions.
• C) Deferred revenue.
• D) Net assets with donor restrictions.

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Definitions:

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Physiological Response

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