A private school is given $40,000 to permanently endow one of its education programs. A debit of $40,000 should be made to

Question

Quizplus · Accepted Answer

The $40,000 is specifically designated to permanently endow one of the school's education programs, therefore it should be recorded as Cash restricted for endowment. This ensures that the funds are not used for any other purpose and are set aside for the designated program in perpetuity.

A Private School Is Given $40,000 to Permanently Endow One