In 20X1,Ellen College,a Private Not-For-Profit Institution,received a $100,000 Grant for Faculty

question 35

Multiple Choice

In 20X1,Ellen College,a private not-for-profit institution,received a $100,000 grant for faculty research.The grant money was not spent until 20X2.For 20X1,Ellen College should report the contribution as:

• A) Temporarily restricted asset.
• B) Unrestricted revenue.
• C) Other operating revenue.
• D) Other non-operating revenue.

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Definitions:

Available Balance

The amount of funds in an account that are accessible for withdrawal or use, considering any pending transactions.

Book Balance

The amount of money on record in a company’s financial accounts, often compared to the available cash balance to identify discrepancies.

Average Daily Float

The average amount of uncollected checks in the process of clearing, representing the gap between bank records and available funds.

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a named party.