Which Type of Account Would You Assign a Gift of $1.5

question 9

Multiple Choice

Which type of account would you assign a gift of $1.5 million dollars with restriction indicating that only the future income generated from this balance can be used by the government?

• A) Committed
• B) Nonspendable
• C) Assigned
• D) Unassigned
• E) Restricted

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Definitions:

Frequently Occurring

Happening or appearing in a pattern that repeats often within a given time frame.

Adjusting Entries

Journal records created at the close of an accounting cycle to distribute revenues and costs to the period they truly happened in.

Prepaid Insurance

The portion of insurance premiums that has been paid in advance and is considered a current asset on the balance sheet because it provides future economic benefits.

Cash Payments

Transactions that involve the transfer of currency or check from one party to another as a form of payment.