Endowment fund is a_____ Receipt and shown in the____side of the balance sheet.
Answers
Answer:
Endowment fund like other funds is treated as a liability. Investment made out of endowment fund is treated as an asset. Interest on investment of endowment fund is treated as an income.
Answer:
HaPpY InDePeNdAnCe ♥️ DAY
Explanation:
What Is an Endowment Fund?
An endowment fund is an investment fund established by a foundation that makes consistent withdrawals from invested capital. The capital or money in endowment funds is often used by universities, nonprofit organizations, churches, and hospitals. Endowment funds are typically funded by donations that are deductible for the donors and are used for specific purposes.
KEY TAKEAWAYS
Endowment funds are investment portfolios where the initial money is provided by donations to a foundation.
An endowment fund will have an investment, withdrawal, and usage policy governing how it is run.
Some university endowment funds in the U.S. have more $30 billion in assets with hundreds of millions paid out in scholarships.