Unrestricted Gifts and Endowment Income of a Private University Are

question 60

Multiple Choice

Unrestricted gifts and endowment income of a private university are reported as

• A) increases in the unrestricted current fund balance on the statement of changes in fund balances.
• B) unrestricted revenues on the statement of current funds revenues, expenditures, and other changes.
• C) unrestricted revenues on the statement of activities.
• D) increases in the unrestricted current fund balance on the statement of activities.

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Definitions:

Note Payable

A formal written agreement to pay a specified amount of money, including interest, by a certain date, recorded as a liability on the balance sheet.

Original Principal

The initial amount of debt or loan before any interest or fees are added; it is the base amount on which interest calculations are made.

Accrued Interest

Interest earned or owed that has not yet been paid or received.

Discounting

The process of determining the present value of a future amount of money or stream of cash flows given a specific rate.