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• D) Fund accounting for internal and external reporting purposes has been replaced by FASB with the three classes of net assets (unrestricted, temporarily restricted, and permanently restricted).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

Concern For Task

The focus and prioritization given to completing the responsibilities or objectives associated with a specific job or project.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish those goals.

Task Responsibilities

The duties and obligations associated with a specific job or role, often outlined in a job description or assignment.

Work Standards

Established criteria or benchmarks defining the quality, quantity, and efficiency of work expected from employees within an organization.