In accordance with ASC 958,contributions from donors that are to be permanently invested should be disclosed on the statement of activities of a private university as an increase in:
A)net assets with donor restrictions.
B)funds without donor restrictions.
C)endowment fund balance.
D)deferred revenues.

Question

Quizplus · Accepted Answer

Contributions from donors that are designated to be permanently invested increase net assets with donor restrictions according to ASC 958. This is because these contributions are restricted by donors for long-term purposes, such as endowments, where the principal is to be maintained in perpetuity and only the income or a portion of the fund may be used for the purposes specified by the donor.

In Accordance with ASC 958,contributions from Donors That Are to Be