In accordance with ASC 958,contributions from donors which are to be permanently invested should be disclosed on the statement of activities of a private university as an increase in:
A) Permanently restricted net assets.
B) Permanently restricted fund balance.
C) Endowment fund balance.
D) Deferred revenues.

Question

Quizplus · Accepted Answer

According to ASC 958, contributions from donors which are to be permanently invested should be disclosed on the statement of activities of a private university as an increase in permanently restricted net assets. This is because these contributions can only be used for specific purposes and cannot be expended by the university. Therefore, they are classified as permanently restricted net assets.

In Accordance with ASC 958,contributions from Donors Which Are to Be