For the year ended June 30,20X9,a private college received contributions from alumni which were restricted for faculty research stipends to be awarded during the next fiscal year.For the year ended June 30,20X9,these contributions should be disclosed on the statement of activities of the private college as an increase in:
A) the fund balance of the restricted current fund.
B) temporarily restricted net assets.
C) deferred revenues.
D) temporarily restricted fund balance.

Question

Quizplus · Accepted Answer

The contributions from alumni are restricted for faculty research stipends to be awarded during the next fiscal year, which means that they are temporarily restricted net assets until they are spent or fulfilled. Therefore, the increase in contributions should be disclosed as an increase in temporarily restricted net assets on the statement of activities.

For the Year Ended June 30,20X9,a Private College Received Contributions