Which of the Following Is an Example of a Mandatory

question 12

Multiple Choice

Which of the following is an example of a mandatory transfer in college and university accounting?

• A)a transfer to a Plant Fund to set aside amounts that will be used to pay debt service in accordance with a clause in a bond agreement
• B)a transfer to a Plant Fund based on a decision by the Board of Trustees to build a new school of engineering
• C)a transfer to a Plant Fund based on a decision by management to build new box seats in the football stadium for major donors
• D)a reclassification from temporarily restricted to unrestricted net assets

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Definitions:

Executives

Senior-level employees responsible for strategizing, decision-making, and overseeing a company or organization's overall direction.

General Public

The broad group of people in society who do not have a specialized knowledge of or professional involvement in a particular subject.

Privately Held

A business ownership structure where the company’s shares are not traded on public stock exchanges and are typically owned by founders, management, or a private group.

Closely Held

A business that is privately owned, typically with a small number of shareholders, and not publicly traded on stock markets.