How Should That Portion of Investment Income Earned from the Investment

question 14

Multiple Choice

How should that portion of investment income earned from the investment of endowment contributions that is required to be used to maintain the purchasing power of the endowment be accounted for, if the not-for-profit organization uses the deferred contribution method of accounting?

• A) As investment income.
• B) As a deferred contribution.
• C) As a direct increase in net assets.
• D) As donation revenue.

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