Which of the Following Statements Is True Regarding Fund Accounting

question 22

Multiple Choice

Which of the following statements is True regarding fund accounting for not-for-profit organizations (NFPs) ?

• A) Fund accounting can be used by NFPs for external purposes, but not internal purposes.
• B) Fund accounting can provide a good mechanism for facilitating reporting to donors.
• C) Fund accounting is not allowed.
• D) Fund accounting for internal and external reporting purposes has been replaced by FASB with the two classes of net assets (without donor restrictions, and net investment in restricted assets).

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Definitions:

Supply Schedule

A table of numbers showing the amounts of a good or service producers are willing and able to make available for sale at each of a series of possible prices during a specified period of time.

Price-Elasticity

A measure of how the quantity demanded or supplied of a good changes in response to a change in its price.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in its price.

Demand Schedule

A table that shows the quantity of a good that consumers are willing to purchase at different prices.