The Permanent University Fund Was Established in 1876 with a Land

question 7

Multiple Choice

The Permanent University Fund was established in 1876 with a land grant of 1 million acres. It contributes to the support of

• A) all institutions of higher education in Texas.
• B) virtually all community colleges in Texas.
• C) only institutions designated by the state legislative body.
• D) the University of Texas and Texas A&M university systems.
• E) all Texas educational institutions, regardless of size or need.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period.

Depreciation Expense

A technique for spreading out the expense of a physical asset throughout its lifespan.

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and equipment.

Accrued Expense

Expenses incurred but not yet paid or recorded at the end of an accounting period, recognizing expenses when they are incurred, not when they are paid.