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

question 27

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) The college or university must recognize its interest in the contribution as an asset and revenue at the same time as the foundation.
• C) 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.
• D) None of the above

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Definitions:

Due-on-sale Warranties

Clauses in a mortgage agreement that require the full loan balance to be repaid if the property is sold.

Express Warranties

Explicit guarantees made by a seller about the quality, safety, or performance of a product or service.

Certain Circumstances

Refers to specific conditions or factors that affect or determine the outcome or application of a rule in a particular case.

Disclaimer

A statement that denies responsibility or relinquishes a right, often used to avoid legal liability.