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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Definitions:

Invested

The act of allocating resources, typically money, into something with the expectation of generating income or profit, such as stocks, bonds, real estate, or a business venture.

Balance of Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports over a given period, indicating a positive balance of trade.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to the selling country's national income.

Imports

Goods or services brought into one country from another for sale or use.