In 2011 a Faculty Member at a Private College Received

question 109

Multiple Choice

In 2011 a faculty member at a private college received a grant from the National Science Foundation to conduct basic research on tree frogs in the amount of $400,000.Expenses associated with the grant totaled $390,000 in 2012.In the Statement of Activities for 2012,the college should show:

• A) Revenues of $400,000 and expenses of $390,000 in Temporarily Restricted Net Assets.
• B) Revenues of $390,000 and expenses of $390,000 in Temporarily Restricted Net Assets.
• C) Revenues of $390,000 and expenses of $390,000 in Unrestricted Net Assets.
• D) Expenses of $390,000 in Unrestricted Net Assets and a decrease in Temporarily Restricted Net Assets of $390,000.