Receipt of a $500,000 gift by a private college that must be invested,the earning of which are to be used to support a "chaired" professorship in accounting,would be recorded as an increase in temporarily restricted net assets.

Question

Quizplus · Accepted Answer

The gift would be recorded as an increase in permanently restricted net assets, as the principal must be maintained indefinitely, and only the earnings are used for the professorship.

Receipt of a $500,000 Gift by a Private College That