In the Current Year National Pet Charities,which Uses Fund-Type Accounting

question 32

Multiple Choice

In the current year National Pet Charities,which uses fund-type accounting to maintain its books and records,received a $30,000 contribution to help educate people on responsible pet ownership.During the current year,the entry to record this donation is

• A)UNRESTRICTED FUND.No entry. RESTRICTED FUND.Debit Cash $30,000;Credit Revenues $30,000.
• B)UNRESTRICTED FUND.No entry. RESTRICTED FUND.Debit Cash $30,000;Credit Net assets $30,000.
• C)UNRESTICTED FUND.Debit Cash $30,000;Credit Revenues $30,000. RESTRICTED FUND.No entry.
• D)UNRESTRICTED FUND.Debit Cash $30,000;Credit Net assets $30,000.

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Definitions:

Journal Entry

A journal entry is a record in accounting that logs a business transaction and shows the debit and credit balances affected in the financial statements.

Salary Allocation

The process of distributing an employee's compensation among various accounts or departments based on where or how their time was spent or services were utilized.

Dissolution

The process of legally dissolving a business entity, which includes disbanding its operations and distributing its assets.

Partnership

An officially recognized form of commercial enterprise undertaken by at least two individuals, involving joint management and profit allocation.