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:

Real Estate

Property consisting of land or buildings, and anything affixed to the land, which can include residential, commercial, and agricultural properties.

Remove Soil

The act of excavating or relocating dirt, sand, or earth from one location to another, often for construction or landscaping purposes.

Trade Fixtures

Personal property that a tenant installs on a leased property for business purposes, which can be removed at the lease's end.

Real Estate

Property consisting of land or buildings, and any natural resources or rights associated with it.