Clay University,a not-for-profit university,earned $300,000 from bookstore revenue and spent $100,000 for faculty research in 20X1.The $100,000 for faculty research came from a $150,000 research grant received in the previous year.What is the effect of these events on unrestricted net assets in 20X1?
A) Increase $450,000
B) Increase $400,000
C) Increase $300,000
D) Increase $200,000

Question

Quizplus · Accepted Answer

The unrestricted net assets increase by the $300,000 earned from bookstore revenue, as the research grant was restricted and does not affect unrestricted net assets.

Clay University,a Not-For-Profit University,earned $300,000 from Bookstore Revenue and Spent