Which of the Following Statements Is Correct

question 37

Multiple Choice

Which of the following statements is correct?

• A) Unrestricted resources can be used for any purposes by a not-for-profit organization.
• B) Unrestricted resources can be used for any purposes that are consistent with the goals and objectives of the not-for-profit organization.
• C) Restricted resources can only be used in the case of a serious financial deficit situation.
• D) Both restricted and unrestricted funds must be used in accordance with the wishes of the contributor.

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Definitions:

Food Costs

The total cost incurred by a business to produce the food items it sells.

Units-Of-Production Depreciation

A method of depreciation based on an asset's usage, activity, or units of production rather than the passage of time.

Salary

Regular payments made to employees, typically on a monthly basis, for their professional services.

Direct Labor

The wages paid to workers who are directly involved in the production or manufacture of goods or services.