The Account Title "Resources Released from Restriction" Is Reported ByA

question 18

Multiple Choice

The account title "Resources Released from Restriction" is reported byA.'restricted fund' as a

• A)Revenue account.
• B)Contra-revenue account.
• C)Expense account.
• D)Contra-expense account.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Direct Method

One of two methods of preparing the net cash flow from operating activities section of the statement of cash flows. Each of the major areas of sources and uses of cash for operations is detailed separately.

Indirect Method

One of two methods of preparing the net cash flow from the operating activities section of the statement of cash flows. Involves converting the accrual basis net income figure from the income statement to the net cash flows from operating activities.

Operating Activities

Those activities most closely related to conducting the business for which the enterprise was established. Activities such as selling merchandise and services to customers and paying salaries and other expenses needed to continue earning the operating revenue are classified as operating activities.