Author Question: A government university received a cash donation 1,000,000 to create an endowment. The income of the ... (Read 64 times)

drink · **on:** Jul 5, 2018

A government university received a cash donation 1,000,000 to create an endowment. The income of the endowment can be used to support any activity of the university.

In the balance sheet, the 1,000,000 endowment should be included in which component of net position?
A. Unrestricted net position.
B. Restricted nonexpendable net position.
C. Nonspendable net position.
D. Permanently restricted net position.

Question 2

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called
a. single-entry accounting.
b. compound-entry accounting.
c. multiple-entry accounting.
d. double-entry accounting.