[misanthrope87]

Can someone explain the following question?

A non-for-profit voluntary health and welfare organization received a $500,000 permanent endowment. The donor stipulated that the income must be used for a mental health program. The endowment fund reported a $60,000 net decrease in market value and $30,000 investment income. The organization spent $45,000 on the mental health program during the year. What amount of change in TRNA should the organization report?

a. 75k increase

b. 15k decrease

c. $0

d. 425k increase

The answer is C, and I just don’t get why even with Becker’s explanation.

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[forever4]

https://smallbusiness.chron.com/definition-permanently-restricted-assets-23930.html

I think endownment is permanently restricted, so you report 0 in temporary restricted!

FAR 5/14 88 PASSED!
REG 7/13 74 :((((((((....! I cant believe it!!!! I studied so hard...
REG retake 11/29 -> 89!!!!!!!!!!!!!!!!!!!
BEC 10/11/12 -> 84!!!!!!!!!!!!!
AUD 10/25/12 -> 95!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I'm DONE! OMG 8 months of hard work.

I SHALL PASS. BECAUSE IT'S ME, SO EVERYTHING WILL BE OK!

[Author]

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