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How Should Investment Income Earned from the Investment of Endowment

Question 36

Multiple Choice

How should investment income earned from the investment of endowment contributions be accounted for if the not-for-profit organization uses the restricted fund method of accounting and the use of the investment income is restricted to a specific purpose for which the not-for-profit organization has a restricted fund?


A) As investment income in the endowment fund
B) As a deferred contribution
C) As investment income in the general fund
D) As investment income in the specific restricted fund

Correct Answer:

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