Whether gains on the sale of a government endowment's investments should be considered additions to principal or expendable income for accounting purposes is:

Question

Quizplus · Accepted Answer

The correct answer is B because, in the absence of specific donor restrictions or legal stipulations, gains on the sale of investments by a government endowment are generally considered expendable income (added to unrestricted assets) rather than being added to the principal (nonexpendable assets). This approach allows for the use of the gains for purposes as determined by the governing body or management, within the framework of the endowment's objectives.

Whether Gains on the Sale of a Government Endowment's Investments