Contributions with no eligibility requirement restricted by an external donor for a particular operating purpose would be reported as increases to restricted fund balances by a public college or university and as an addition to net assets with donor restrictions by a private college or university.

Question

Quizplus · Accepted Answer

This is correct as per generally accepted accounting principles for reporting contributions with restrictions. Public and private universities have different guidelines for reporting restricted contributions, which results in different accounting treatment of such contributions.

Contributions with No Eligibility Requirement Restricted by an External Donor