Author Question: An increase in an asset account may be offset by a(n) a. decrease in a liability account. b. ... (Read 162 times)

sjones · **on:** Jul 5, 2018

An increase in an asset account may be offset by a(n)
a. decrease in a liability account.
b. increase in an expense account.
c. increase in owner's equity.
d. decrease in owner's equity.

Question 2

Chase Foundation establishes a 1,000,000 trust for a government university. The local bank is appointed as trustee of the fund. The income of the trust can be used to support any activity of the university.

In the university's statement of net position, the 1,000,000 trust should be included in which component of net position?
A. Not reported.
B. Unrestricted net position.
C. Restricted nonexpendable net position.
D. Permanently restricted net position.