When a Private College or University Has a Foundation,and That

question 115

Multiple Choice

When a private college or university has a foundation,and that foundation receives contributions specifically directed for the benefit of the college or university,

• A) The college or university records no revenue until monies are received from the foundation
• B) At the time of the contribution to the foundation, the college or university records an increase in net assets and unearned revenue. When the money is received the unearned revenue is reduced and revenue is recorded.
• C) The college or university must recognize its interest in the contribution as an asset and revenue at the same time as the foundation.
• D) None of the above

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Definitions:

Chemical Digestion

The process in the digestive system where enzymes break down food into small molecules the body can absorb.

Diffusion

Tendency for solute molecules to move from an area of high concentration to an area of low concentration in solution; the product of the constant random motion of all atoms, molecules, or ions in a solution.

Active Transport

The process where molecules travel through a cellular membrane from an area of lesser concentration to an area of greater concentration, necessitating the use of energy.

Absorption

The process by which nutrients, drugs, and other substances are taken up from the gastrointestinal tract into the bloodstream.