An unrestricted endowment established by the governing board of a public college engaged only in business-type activities is considered a permanent fund and would be reported as unrestricted net assets.

Question

Quizplus · Accepted Answer

A public college or university engaged only in business-type activities would not report a permanent fund. A public college or university reports resources designated as an endowment by the governing board as an increase in unrestricted net assets. These net assets are captioned as funds functioning as endowments. Restricted net assets only arise when donors external to the institution place restrictions on gifts.

An Unrestricted Endowment Established by the Governing Board of a Public