A Not-For-Profit University Uses Fund Accounting

question 40

Multiple Choice

A not-for-profit university uses fund accounting.The university's governing board decides to set aside $500,000 in a separate fund called the Student Performance Quasi-Endowment Fund,the income of which will be used to finance a long-term study on the career paths of the university's graduates.In which net asset classification of the university's statement of financial position should this fund be reported?

• A)Unrestricted
• B)Temporarily restricted
• C)Permanently restricted
• D)Endowment funds

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