Ronwell Gates donated $200,000 to Conway University and specified that the principal amount not be spent but be maintained permanently. Interest on the invested funds can be used to award scholarships to those who excel in theoretical physics. How should the $200,000 contribution be presented on Conway University's financial statements?
A)As revenue of the endowment fund.
B)As a direct increase in net assets of the endowment fund.
C)As revenue of the operating fund.
D)As deferred revenue of the operating fund.

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The Answer of Ronwell Gates donated $200,000 to Conway University and specified that the principal amount not be spent but be maintained permanently. Interest on the invested funds can be used to award scholarships to those who excel in theoretical physics. How should the $200,000 contribution be presented on Conway University's financial statements?
A)As revenue of the endowment fund.
B)As a direct increase in net assets of the endowment fund.
C)As revenue of the operating fund.
D)As deferred revenue of the operating fund.

Ronwell Gates Donated $200,000 to Conway University and Specified That