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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Definitions:

Hypertonic

Describes a fluid that has a high overall solute concentration relative to another fluid.

Turgor

Pressure that a fluid exerts against a structure that contains it.

Hypertonic

A solution having a higher concentration of solutes compared to another solution, resulting in the movement of water out of a cell if placed in such a solution.

Hypotonic

Describes a fluid that has a low overall solute concentration relative to another fluid.