Which of the Following Statements Is Regarding Fund Accounting for Not-For-Profit

question 31

Multiple Choice

Which of the following statements is 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• D) Fund accounting for internal and external reporting purposes has been replaced by FASB with the three classes of net assets (unrestricted, temporarily restricted, and permanently restricted).

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Definitions:

Computer Program

A set of instructions written in a programming language that is executed by a computer to perform specific tasks.

Common Use

Refers to the practice or item that is widely accepted and utilized by the general public or within a certain industry.

Moral Rights

Refers to the rights of creators to have their work attributed to them and to object to any derogatory treatment of it, protecting the personal and reputational connection between the creator and their creation.

Industrial Design Act

Legislation that provides protection for the visual design of objects that are not purely utilitarian, covering the creation of shapes, configurations, or looks of industrial products or parts.