12a) Which of the following statements is correct?If a not-for-profit organization uses the restricted fund method of reporting and has a capital fund, how should a donation of cash restricted to the purchase of land be reported?

Multiple Choice

a) Endowments are provided as donations which only allow a not-for-profit organization to invest in other not-for-profit organizations only.

b) Endowments are unrestricted donations which can be used for any purposes that are consistent with the goals and objectives of the not-for-profit organization.

c) Endowments may be restricted and unrestricted funds which must be used in accordance with the wishes of the contributor and only available during the life of the donor.

d) Endowments are donations that are received with the provision that it will be invested and only the investment income may be spent by the organization.