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.

Describe the purpose and components of the general journal and general ledger.

Understand the significance of the historical cost principle in balance sheet reporting.

Define the primary objective of financial reporting.

Compute key financial ratios like the current ratio and explain their significance.

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Definitions:

Liability Account

An accounting record that holds the amounts owed by a company to creditors, suppliers, or lenders.

Terms

Conditions under which a sale is made, including payment timeframe, discounts, and penalties for late payment.

Discount

A reduction from the usual cost of something, or the act of lowering the price of goods, services, or securities.

Day

A 24-hour period from midnight to midnight.