In 2013,a private college received a grant of $70,000 with purpose restrictions.In 2014 funds were expended for the purpose outlined in the gift; however,it was not possible to determine whether the restricted funds or unrestricted funds were used.The presumption should be:

Question

Quizplus · Accepted Answer

The presumption should be that the restricted funds would have been used first, as this is the standard practice to ensure compliance with donor restrictions. Therefore, if it is not possible to determine which funds were used, it can be assumed that the restricted funds were used first.

In 2013,a Private College Received a Grant of $70,000 with Purpose