Income Earned on Restricted Endowment Resources Should​

question 45

Multiple Choice

Income earned on restricted endowment resources should​

• A)​remain in the endowment fund.
• B)​be transferred and recorded directly in the unrestricted fund.
• C)​be recorded in the endowment fund with a liability established for future transfer to an unrestricted fund.
• D)​transferred immediately and recorded directly to the fund the donor designate to receive the income/benefit.

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Definitions:

Operating Cycle

The duration of time from the purchase of raw materials to the collection of receivables resulting from sales.