Cactus College, a small private college, received a research grant from NACUBO to study whether service efforts and accomplishments measures improve institutional performance. In accordance with FASB standards the grant would be reported as an increase in:
A) Net assets without donor restrictions.
B) Net assets with donor restrictions.
C) Deferred revenue.
D) Board-designated net assets.

Question

Quizplus · Accepted Answer

The grant from NACUBO is likely to have donor-imposed restrictions on its use, meaning it should be reported as an increase in net assets with donor restrictions according to FASB standards.

Cactus College, a Small Private College, Received a Research Grant