Mr Generous Donated $100,000 to Excel Private School and Specified

question 29

Multiple Choice

Mr. Generous donated $100,000 to Excel Private School and specified that the principal amount not be spent but be maintained permanently. Interest on the invested funds can be used to award scholarships to those who excel in drama. How should the $100,000 contribution be presented on Excel Private School's financial statements?

• A)As a direct increase in net assets of the endowment fund
• B)As revenue of the operating fund
• C)As revenue of the endowment fund
• D)As deferred revenue of the operating fund

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