A Private College Received a Grant of $40,000 with Purpose

question 41

Multiple Choice

A private college received a grant of $40,000 with purpose restrictions in 2008. In 2009 funds were expended for the purpose outlined in the gift; however, it was not possible to determine whether the restricted funds or unrestricted funds were used. The presumption should be:

• A) The restricted funds would have been used first
• B) The unrestricted funds would have been used first
• C) The restricted funds and unrestricted funds would have been used equally
• D) The restricted funds and unrestricted funds would have been used, based on a weighted average of the amounts

Understand the basics of horizontal analysis for comparing financial data over time.

Match transactions to their respective journals based on the nature of the transaction.

Understand the role of subsidiary ledgers in accounting.

Learn the process and significance of adjustments in accounting.

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Definitions:

Admiralty Cases

Legal issues and disputes related to maritime law and activities.

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Business Litigation

The process of resolving disputes and legal conflicts related to business activities through the court system.