A not-for-profit entity that conducts numerous programs receives investments as a donation.
The donor, in a letter accompanying the donation, states that the principal of the donation must be maintained intact permanently, and that the income from the investment must be used to finance research in kidney disease. If the entity receives income of 8,000 from these investments, how should be income be reported?
a. as an increase in unrestricted net assets
b. as an increase in temporarily restricted net assets
c. as an increase in permanently restricted net assets
d. as an increase in any of the net asset classifications directed by the entity's trustees
Question 2
Computerized accounting systems
a. are only used by medium- and large-sized companies
b. are generally not as accurate as manual systems
c. record and post transactions at the same time
d. must make use of special journals
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A company that sells sweatshirts finds that the profit can be modelled by P(s)= ...