Which of the Following Is True of a Statement of Activities

question 122

Multiple Choice

Which of the following is true of a Statement of Activities prepared for a private college or university?

• A) All expenses are shown as unrestricted.
• B) Reclassifications from unrestricted to permanently restricted net assets are reported when the governing board designates unrestricted funds for permanent investment in the endowment.
• C) Only realized gains or losses on investments are reported.
• D) All of the above are true.

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Definitions:

Total Cost

The total amount of money spent on creating goods or services, encompassing both constant and fluctuating expenses.

Implicit Cost

Represents the opportunity costs of using resources owned by the firm for its own production processes, without direct payment.

Interest Income

The income earned from lending funds or investing in interest-bearing financial instruments, such as saving accounts, bonds, or loans.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs related to production.