Question

Any amount received towards an endowment fund is a __________ receipt.

• A. Ordinary
• B. Special
• C. Revenue
• D. Capital

Answer 1

The correct option is A Ordinary

Endowment fund is normally associated with non profit organization.Non profit organization should record investment income as ordinary receipts. An amount received for endowment fund is an ordinary receipt.

Receipt of endowment fund is not generated by the business operations. It's a rare/occasional receipt which is used for supporting regular business income to provide stability in income.