Which of the Following Statements Regarding Fund Accounting Is FALSE

question 19

Multiple Choice

Which of the following statements regarding fund accounting is FALSE?

• A)Not for profit organizations must use the restricted fund method to record contributions.
• B)Under the deferral method, restricted contributions are recorded as revenue in the same period as the related expense is recorded.
• C)Under the restricted fund method, the not-for-profit organization creates, at least, a general fund and an endowment fund.
• D)Under the restricted fund method, contributions to the restricted funds are considered revenues to those funds. Unrestricted contributions are revenues to the general fund.

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