Unrestricted Current Funds of a Private University Designated by the Governing

question 121

Multiple Choice

Unrestricted current funds of a private university designated by the governing board for a specific future purpose should be reported as part of:

• A) unrestricted net assets.
• B) temporarily restricted net assets.
• C) board-restricted net assets.
• D) term endowments.

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Definitions:

Indenture

A legal document that describes all the details of a debt security to potential buyers.

Covenant

A legal agreement or contract specifying certain conditions or actions that must be met or complied with.

Prospectus

A regulatory filing that describes all the details of a debt or equity security to potential buyers.