In accordance with FASB 117,contributions from donors which are to be permanently invested should be disclosed on the statement of activities of a private university as an increase in:
A)Permanently restricted net assets.
B)Permanently restricted fund balance.
C)Endowment fund balance.
D)Deferred revenues.

Question

Quizplus · Accepted Answer

According to FASB 117, contributions from donors that are permanently invested should be recognized as an increase in permanently restricted net assets on the statement of activities for a private university. This is because these funds cannot be used for general operating purposes and their use is restricted to specific purposes as determined by the donor.

In Accordance with FASB 117,contributions from Donors Which Are to Be