Author Question: A statement of owner's equity is a statement summarizing all of the changes in owner's equity during ... (Read 89 times)

magmichele12 · **on:** Jul 5, 2018

A statement of owner's equity is a statement summarizing all of the changes in owner's equity during a specified period of time.
a. True
b. False
Indicate whether the statement is true or false

Question 2

A not-for-profit hospital's trustees designate 600,000 of the hospital's unrestricted resources for the future acquisition of equipment. The trustees tell the hospital comptroller to purchase a separate certificate of deposit for it.

How should the hospital record and report this investment?
a. as an investment, the resources of which will be designated as restricted in the net assets section of the balance sheet
b. report the investment as assets limited as to use, and report 600,000 of net assets as restricted net assets
c. report the investment as assets limited as to use, and report 600,000 of net assets as unrestricted net assets
d. report the investment as restricted investments and report 600,000 of net assets as restricted net assets