With Respect to the Endowment Fund, Which of the Following

question 25

Multiple Choice

With respect to the endowment fund, which of the following statements is true?

• A)Endowment contributions are treated the same way under both the deferral method and the restricted fund method.
• B)Endowment contributions are recognized as revenue under the deferral method and as revenue in a restricted fund under the restricted fund method.
• C)Endowment contributions are recognized as a direct increase to net assets under the deferral method and as revenue to the endowment fund under the restricted fund method.
• D)Endowment contributions are recognized as revenue under the deferral method and as a direct increase to net assets under the restricted fund method.

---

Definitions:

Long-Run Aggregate Supply

The total quantity of goods and services an economy can produce when resources are fully employed, assuming constant technology and factors of production.

Labor Force

The total number of people employed and unemployed, seeking employment in an economy.

Technology

The application of scientific knowledge for practical purposes, especially in industry, involving the development and use of technical means and their interrelation with life, society, and the environment.

Stock of Capital

The total quantity of physical assets used in the production of goods and services in an economy.