A Donor Contributed $1,000,000 to a Not-For-Profit Hospital with the Restriction

question 69

Multiple Choice

A donor contributed $1,000,000 to a not-for-profit hospital with the restriction that the funds be invested indefinitely and the income be used for cancer research.Which of the following would be true?

• A) The gift would be recorded as an increase in permanently restricted net assets.
• B) The income from the endowment would be recorded as an increase in unrestricted net assets.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

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