During the Years Ended June 30,2014 and 2015,Jackson University,a Private

question 2

Multiple Choice

During the years ended June 30,2014 and 2015,Jackson University,a private university,conducted a cancer research project financed by a $1,000,000 gift from an alumnus.The entire amount was pledged by the donor on July 10,2013,although she paid only $200,000 at that date.The gift was restricted to the financing of this particular research project.During the two-year research period,Jackson's gift receipts and research expenses related to the research project were as follows for each fiscal year (FY) : FY 2014 FY 2015
Gift receipts $200,000 $800,000
Cancer research expenses $100,000 $900,000
How much contribution revenue should Jackson University report for the year ended June 30,2015?

• A) $0
• B) $800,000
• C) $900,000
• D) $1,000,000

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Definitions:

Causality

The relationship between cause and effect, where one event (the cause) directly produces another event (the effect).

Cross-Sectional Study

An observational study that analyzes data from a population, or a representative subset, at a specific point in time.

Causal Relationships

The connection between two events where one is the effect of the occurrence of the other, indicating a cause-and-effect linkage.

Happiness

A state of well-being characterized by emotions ranging from contentment to intense joy.