An alumnus donates securities to a private college and stipulates that the principal be held in perpetuity and income from the securities be used for faculty travel. Dividends received from the securities should be recognized as increases in:
A. Deferred revenue.
B. Endowments.
C. Net assets without donor restrictions.
D. Net assets with donor restrictions.
Answer: D
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Oreo Company has current assets of $20,000, current liabilities of $8,000, and long-term liabilities of $3,000. Oreo wants to buy new equipment. How much of its existing cash can Oreo use to acquire equipment without allowing its current ratio to decline below 2.0 to 1?
a. $ 4,000 b. $ 8,000 c. $ 10,000 d. $ 12,000
The variable costing reports of service firms will not report ________
a. contribution margin ratio b. manufacturing margin c. contribution margin d. None of these choices.
Why can't a decision-maker use sales revenue and expense information provided on the income statement as a measure of cash inflows and outflows from operating activities?
RFM analysis is used to analyze and rank customers according to their ________.
A. propensity to respond to marketing stimulus B. motivation and needs C. socioeconomic status D. receptivity to promotions E. purchasing patterns