A permanent fund reports endowment investments of $10 million, where donors specify that investment income be used for specific activities. Total unspent income on these investments at year-end is $45,000. On its balance sheet, the permanent fund reports the $45,000 in which category of fund balance?

Question

Quizplus · Accepted Answer

The $45,000 is reported in the Restricted category of fund balance because the donors have specified that the investment income must be used for specific activities, indicating a restriction on how the funds can be used.

A Permanent Fund Reports Endowment Investments of $10 Million, Where