Assuming a not-for-profit organization used the restricted fund method and had separate funds for the purpose for which donations were intended, how should investment income earned on donation revenue be accounted for if the donation revenue was a restricted contribution but there was no restriction placed on the use of the investment income?

Question

Quizplus · Accepted Answer

Investment income earned on donation revenue that was restricted, but without restrictions on the use of the investment income itself, should be accounted for in the general fund. This is because the restrictions do not apply to the income generated from the donations, allowing the organization to use this income for general purposes.

Assuming a Not-For-Profit Organization Used the Restricted Fund Method and Had