Author Question: The Monks Veterinary Hospital receives 1.5 million from the Clementine Foundation. Only the earnings ... (Read 20 times)

Arii_bell · **on:** Jul 5, 2018

The Monks Veterinary Hospital receives 1.5 million from the Clementine Foundation. Only the earnings from investing the contribution may be used by the Hospital to conduct research on feline leukemia.

Assuming the Hospital uses fund accounting for internal purposes, which funds should be used to report (1) the assets and (2) any investment earnings?
original investment
contribution earnings
a. endowment fund endowment fund
b. general fund specific purpose fund
c. specific purpose fund general fund
d. endowment fund specific purpose fund

Question 2

In a merchandise business, sales minus operating expenses equal net income.
a. True
b. False

Indicate whether the statement is true or false