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Describe What Fund Accounting Is and Why Is It Used

question 8

Essay

Describe what fund accounting is and why is it used for not-for-profit organizations.


Definitions:

Consolidating Entries

Journal entries made in the process of combining the financial statements of multiple subsidiaries with those of a parent company.

Original Cost

The acquisition cost of an asset before adjusting for depreciation, amortization, or impairment costs.

Book Value

The net value of a company's assets minus its liabilities, essentially the company's total equity.

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