For the year ended June 30,20X9,a private college received contributions from alumni that 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)net assets with donor restrictions.
C)deferred revenues.
D)temporarily restricted fund balance.

Question

Quizplus · Accepted Answer

Contributions received with donor restrictions, such as those designated for specific purposes like faculty research stipends to be awarded in the future, are reported as an increase in net assets with donor restrictions. This reflects the obligation to use the funds in accordance with the donor's restrictions.

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