Which of the Following Is an Appropriate Use of a Fund

question 32

Multiple Choice

Which of the following is an appropriate use of a fund balance restriction?

• A) To report the amount of capital assets acquired during the year.
• B) To indicate that the finance director is setting aside a substantial amount of resources for a special project.
• C) To report the expected costs of orders outstanding at year end that are to be filled in the next fiscal year.
• D) To report amounts that can only be used for specific purposes due to debt covenant constraints.

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