Author Question: Two income statements for Toby Sam Enterprises are shown below: Toby Sam Enterprises Income ... (Read 46 times)

Tazate · **on:** Jul 5, 2018

Two income statements for Toby Sam Enterprises are shown below: Toby Sam Enterprises Income Statement For the Years 2 and 1 Ending December 31 Year 2 Year 1 Fees earned 674,350 520,600 Operating expenses 472,045 338,390 Operating income 202,305 182,210 Prepare a vertical analysis of Toby Sam Enterprises income statements. Has operating income increased or decreased as a percentage of revenue?
a. Yes, increased by 5. b. Yes, increased by 111.
c. No, decreased by 5. d. No, decreased by 111

Question 2

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 assets?
a. Unrestricted net assets
b. Restricted nonexpendable net assets
c. Invested in capital assets, net of related debt
d. Permanently restricted net assets