If a business records revenues when earned, regardless of whether ...

[LCritchfi]

If a business records revenues when earned, regardless of whether cash has been received, and records expenses when they are incurred, the accounting system is a(n)
 a. accrual basis of accounting.
   b. cash basis of accounting.
   c. modified cash basis of accounting.
   d. revenue basis of accounting.

Question 2

A not-for-profit university uses fund accounting. The university's governing board decides to set aside 500,000 in a separate fund called the Student Performance Quasi-Endowment Fund, the income of which will be used to finance a long-term study on
 
  the career paths of the university's graduates. In which net asset classification of the university's statement of financial position should this fund be reported?
   a. Unrestricted
   b. Temporarily restricted
   c. Permanently restricted
   d. Endowment funds

[Mochi]

Answer to Question 1

a

Answer to Question 2

a