The Following Are Key Terms in Chapter 15 That Relate

question 22

Short Answer

The following are key terms in Chapter 15 that relate to accounting for colleges and universities:
A. Term endowments
B. Annuity agreements
C. Collections
D. Pooled life income agreements
E. Spending rate
F. Total return
For each of the following definitions, indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.
_____1. Agreements to pay the donor the income earned by assets donated to an organization over the specified beneficiary's lifetime
_____ 2. A comprehensive measure of the rate of investment return, which includes unrealized and realized gains and losses, as well as interest and dividend income
_____ 3. A contribution that must be retained intact until the happening of a specific event or the passage of a stated period of time
_____ 4. The proportion of total return that may prudently be used by an institution for current purposes
_____ 5. Agreement to pay stipulated amounts periodically to the donor of assets by the recipient organization

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Definitions:

Price Searchers

Firms or individuals who actively seek out and compare prices in an effort to find the most favorable market conditions.

Price Takers

Economic agents who accept the prevailing market prices and have no influence over them due to their small market share.

Barriers To Entry

Obstacles that make it difficult to enter a particular market, such as high start-up costs, access to technology, or strict regulations.

Dynamic Process

A process characterized by constant change, activity, or progress.