An alumnus donates securities to Rex Private College and stipulates that the principal be held in perpetuity and revenues be used for faculty travel. Dividends received from the securities should be recognized as revenues in a. endowment funds. b. quasi-endowment funds. c. restricted current funds. d. unrestricted current funds.

Q: a. The purchase of mutual fund shares. b. Depositing in a credit union. c. Borrowing from a friend…

A: Financial intermediaries buy from the borrowers direct claims with one set of features (e.g.…

Q: atement correctly describes a feature of a charitable split-interest trust?   A)A grantor who…

A: Charitable split-interest trust refers to the form of trust that has the characteristics of both…

Q: Answer the question please What are restricted assets and how are they shown in the financial…

A: The assets are considered as the resources of the business which is invested by the owners or…

Q: Donor D advises a university that he has established an irrevocable charitable remainder trust,…

A: Journal Entry: It  is the entry which is used to record  the financial  transactions(either economic…

Q: Please prepare dummy journal entries. Assume instead that Good Charity prepares its annual…

A:

Q: **Objective Type Question:** Which of the following is a key requirement for compliance with IRS…

A: The IRC code refers to official codification and consolidation of permanent and general laws It…

Q: Which one of the following transactions would typically not be recognized in the fiduciary fund? a.…

A: There are three categories of funds in the governmental accounting system.

Q: 3. Which of the following accounts appears on both the interim and year-end balance sheets of the…

A: 3. According to the above question,option (d) is the correct one as Appropriation appears on both…

Q: (Based on Appendix B) LTV Corporation grants SARs to key executives. Upon exercise, the SARs…

A: Stock appreciation rights (SARs): Stock appreciation rights are the compensation plans provided in…

Q: An NFP organization receives supplies from a donor. At what amount is the donation reported in…

A: A NPF stands for non profit organisation. It runs for the betterment of society rather than earning…

Q: The redeemable cash value of a life insurance policy (cash surrender value) where the insured is the…

A: The correct answer is Option (b).

Q: A college borrows money to construct a new biology building. Where will the interest paid on this…

A: Interest Expense: It refers to the cost that a borrower pays as a result of borrowing money from the…

Q: Match the appropriate letter indicating the recording of the following transactions:1. General…

A: Funds: Funds refers to an amount of money which is set aside or saved by individuals, government,…

Q: Which of the following statements about constituent funds in the Mandatory Provident Fund (MPF)…

A: Mandatory provident fund: The scheme initiated by different states to ensure a mandatory…

Q: The organization earns and unrealized gain on its permanent endowment.  Is this change in net assets…

A: The change in net assets resulting from unrealized gains on a permanent endowment is typically…

Q: Which of the following are nontax characteristics of a qualified terminable interest property (QTIP)…

A: A Qualified Terminable Interest Property Trust enables the grantor to provide for his surviving…

Q: Donations in cash are easy to measure. What is the treatment that not-for-profit organizations use…

A: Not-for-profit organizations (NPOs) are organizations that are established for purposes other than…

Q: 7. Scholarships for students' tuition and fees that are being paid from grants the university…

A: a. A reduction of tuition and fee revenues.When scholarships are awarded to students and are used to…

Q: SUPREME, a private not-for-profit fraternal organization, should prepare a statement of finandal…

A: Financial statements are those statements and reports which are prepared at the end of accounting…

Q: What type of accrual method (cash, modified, full, governmental, GASB accrual) is to be used to…

A: Accrual Basis of Accounting -In the context of business finance statements, accrual refers to the…

Q: Assume instead that Good Charity prepares its annual financial statements using the restricted fund…

A: Statement of operations…

Q: Noncash contributions received by a not-for-profit entity should be recognized on the date received…

A: A business is an organization entirely made for earning profits or for fulfilling social needs by…

Q: Innie Foundation is a non-stock, non-profit entity that is being operated exclusively for charitable…

A: Not for profit entity hold the business not for profit but for charitable purpose. The charity…

Q: Non-profit organization

A: For a Non-Profit organization, fees collected from students is an income.

Q: hat are the objectives of financial reporting of not-for-profit organizations?

A: Not for profit organizations are those organizations which are not meant for the purpose of profit…

Q: 13. An increase in net assets for a not-for-profit organization that would be labeled exchange…

A: Introduction:- The net assets of a nonprofit organization are equals to the net worth (difference…

Q: Which one of the following is a correct statement about the nontax characteristics of a pooled…

A: Pooled income fund is a kind of charitable trust. It is basically a mutual fund that contains gifts…

Q: Select the best answer - AVHWO receives a donation that is restricted to its endowment and another…

A: Endowment funds are usually treated as permanently restricted revenues by non-profit organization.…

Q: hich statement below best describes the entities that can accept donations from the public and…

A: The Tax laws are maintained by the government of each country or state as the case may be.

Q: Which one of the following statements best describes the most important feature of a support trust?…

A: The support trust is a special arrangement to pay beneficiaries for their education and support. The…

Q: If the donor is a shareholder, a revenue or gain is recognized at an amount equal to the value of…

A: We know that when any asset acquired through donation the same is recorded at fair value on the date…

Q: Government grants related to income are presented preferably as Other income in the income statement…

A: As per IAS 20 Accounting for government grant and disclosure of government assistance  Government…

Q: Discuss the uses of Mutual Funds. a) Retirement Funding b) Education Funds for children c) Lifestyle…

A: A systematic investment plan (SIP) is a method in which investors perform equal, regular payments…

Q: Dan Daytona has created a revocable contingent trust to handle his financial affairs when and if he…

A: THE CORRECT OPTION IS D) I, II, and IV only   i)Dan has given his brother a general power of…

Q: 1. An account for expenditures does not appear in which fund? (a) Capital Projects. (b) Enterprise.…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 3. Which of the following transactions would constitute gifts for gift tax purposes (indicate Yes or…

A: Gift tax is a tax imposed on the transfer of property by one individual to another without receiving…

Income Statement

Income Statement also commonly called a profit and loss statement, one of the key financial statements (considered together with balance sheet and cash flow statement) which shows the revenues and expenses, as well as the gains and losses of a company for a given period. In other words, it presents the financial performance/profitability of a business over a specified accounting period.