Contributions or Grants Restricted by an External Donor for a Particular

question 16

True/False

Contributions or grants restricted by an external donor for a particular operating purpose would be reported as increases to restricted fund balances by a public college or university engaged only in business-type activities and as an addition to temporarily restricted net assets by a private college or university.

---

Definitions:

Single-Entry System

A simple form of bookkeeping where each financial transaction is recorded in only one account, not suitable for tracking assets and liabilities accurately.

Payments

Transactions involving the transfer of money in exchange for goods, services, or to fulfill a legal obligation.

Accounts Payable

Financial obligations a company owes to its suppliers or creditors for goods and services received.

Adjustments

Modifications made to improve functionality or performance, often referring to therapeutic manipulation of the spine or joints.