A Donor Contributed $1,000,000 to a Not-For-Profit Hospital with the Restriction

question 78

Multiple Choice

A donor contributed $1,000,000 to a not-for-profit hospital with the restriction that the funds be invested indefinitely and the income be used for cancer research. Which of the following would be true?

• A) The gift would be recorded as an increase in permanently restricted net assets.
• B) The income from the endowment would be recorded as an increase in temporarily restricted net assets.
• C) Both a) and b) above.
• D) Neither a) nor b) above.

Comprehend how nonionic solids behave in solution.

Grasp the concept of polarity in water molecules.

Differentiate between acids and bases in solution.

Identify and understand different types of chemical bonds.

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Definitions:

Deferred Gross Profit

The portion of gross profit on installment sales that is not recognized immediately but is deferred until cash is received.

Cost Recovery Method

An accounting method where profits are not recognized until all the costs of the goods sold are recovered.

Sales Price

The amount of money for which a product is sold to customers.

Transfer of Risks

The process in contracts where the risk of loss or damage to goods passes from the seller to the buyer.