Which of the Following Would Be Considered an Asset Limited

question 16

Multiple Choice

Which of the following would be considered an asset limited as to use?

• A) Cash donated for an endowment.
• B) Cash from a federal research grant, which is to be used for water quality research.
• C) Cash the board of directors has designated for equipment acquisitions.
• D) Cash contributions that are to be used for the building fund.

---

Definitions:

Recorded Voucher

A documented voucher that has been entered into a financial accounting system.

Periodic Inventory Method

An accounting method that calculates the cost of goods sold and ending inventory levels at the end of an accounting period by conducting a physical count.

Payroll Department

The Payroll Department is responsible for managing employee compensation, including calculating wages, withholding taxes, and distributing paychecks.

Last Week's Wages

The total amount of compensation paid to employees for their work in the previous week.