Which of the Following Receipts May Properly Be Accounted for as an Increase

question 14

Multiple Choice

Which of the following receipts may properly be accounted for as an increase in net assets without donor restrictions by a private college?

• A) Student tuition and fees.
• B) Gift from an alumnus for a new college of business building.
• C) Federal grant for genetic research.
• D) Acceptance of assets, the income from which will be paid to the donor.

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Definitions:

Comparative Balance Sheets

Comparative balance sheets display the financial position of a business at different points in time, facilitating the analysis of trends over time.

Year 1

Typically refers to the first year of operation for a business or the initial year in a time series analysis in accounting or finance contexts.

Investing Activities

This refers to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted into cash in the upcoming fiscal year.