How should investment income earned on donation revenue be accounted for if the donation revenue was a restricted contribution and the not-for-profit organization used the restricted fund method and had a fund for the purpose for which the donation was intended?

Question

Quizplus · Accepted Answer

Since the not-for-profit organization used the restricted fund method and had a fund for the purpose for which the donation was intended, investment income earned on donation revenue should be accounted for as investment income in the restricted fund. This is because the funds were restricted for a specific purpose, and any income earned from those funds should be allocated accordingly.

How Should Investment Income Earned on Donation Revenue Be Accounted