Endowment fund: Colleges and universities traditionally account for permanent endowments, term endowment and endowment resources in separate funds. This practice is common because external users of financial data, such as debt market, consider all three categories of endowments important in lending decisions. Regular or pure endowments are funding whose principal has been specified by the donor as non-expandable. The resources are invested, and the earnings are available for expenditure, usually by the unrestricted current fund. The best option.

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Chapter 19, Problem 19.1.3P

To determine

Introduction:

Endowment fund:

Colleges and universities traditionally account for permanent endowments, term endowment and endowment resources in separate funds. This practice is common because external users of financial data, such as debt market, consider all three categories of endowments important in lending decisions.

Regular or pure endowments are funding whose principal has been specified by the donor as non-expandable. The resources are invested, and the earnings are available for expenditure, usually by the unrestricted current fund.

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