When a private college is the recipient of a perpetual trust held by a third party,the initial contribution revenue is recorded in the permanently restricted net asset class,and income received from the trust is recorded as either unrestricted or temporarily restricted investment income,depending on the trust agreement.

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Quizplus · Accepted Answer

This is true. When a private college receives a perpetual trust from a third party, the initial contribution revenue is recorded as permanently restricted net asset class and income received from the trust is recorded as either unrestricted or temporarily restricted investment income, based on the trust agreement.

When a Private College Is the Recipient of a Perpetual