Which of the Following Is True Regarding Accounting and Financial

question 28

Multiple Choice

Which of the following is true regarding accounting and financial reporting for private colleges and universities?

• A) Expenses may be unrestricted or temporarily restricted depending on donor intent.
• B) The Statement of Cash Flows must use the direct method.
• C) A Statement of Unrestricted Revenues, Expenses and Other Changes in Unrestricted Net Assets and a Statement of Changes in Net Assets may be presented instead of a Statement of Activities.
• D) None of the above are true.

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Definitions:

State Constitution

The fundamental governing document of a U.S. state, outlining the structure, functions, and powers of government within the state.

Legal Rules

Guidelines and principles established through legislations, regulations, or judicial decisions meant to govern behavior and enforceable through legal systems.

Secondary Source

A document or recording that relays information not originally created by the author or speaker, often summarizing or commenting on primary sources.

Compartmentalizing

The practice of separating activities, tasks, or information into distinct sections for improved management and focus.