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

question 11

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. RESTRICTED FUND.No entry.

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Definitions:

Currency

A system of money in general use in a particular country.

Eurodollar Deposit

A U.S. dollar-denominated deposit held at banks outside the United States, typically used in international transactions.

American Dollar

The official currency of the United States, also known as the USD or US dollar.

London Bank

Generally refers to banks based in London, a major international financial center, but without specifying any particular institution or its activities.