A Not-For-Profit Entity That Conducts Numerous Programs Receives Investments as a Donation.The

question 38

Multiple Choice

A not-for-profit entity that conducts numerous programs receives investments as a donation.The donor,in a letter accompanying the donation,states that the principal of the donation must be maintained intact permanently,and that the income from the investment must be used to finance research in kidney disease.If the entity receives income of $8,000 from these investments,how should be income be reported?

• A)as an increase in unrestricted net assets
• B)as an increase in temporarily restricted net assets
• C)as an increase in permanently restricted net assets
• D)as an increase in any of the net asset classifications directed by the entity's trustees

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Definitions:

Nonjudgmental

An attitude or approach that refrains from forming a critical opinion or conclusion about something or someone.

Parietal Hemineglect

A neurological condition resulting from damage to the parietal lobe, characterized by the inability to perceive or attend to stimuli on one side of the body or space.

Right Arm

This refers to the limb on the right side of the body extending from the shoulder to the hand.

Illusory Conjunction

A cognitive phenomenon where features from multiple objects are incorrectly perceived as being combined into a single object.