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:

Organic Matter

Material derived from living organisms, including plants, animals, and their by-products, essential for soil fertility and ecosystem function.

Upper Zones

Refers to regions or layers located towards the top or surface of an area, often pertaining to atmospheric layers, geological strata, or aquatic depths.

Fertile Ecosystems

Ecosystems with high levels of productivity and biodiversity, capable of supporting extensive food webs and numerous species.

Flowing-Water Ecosystem

A river or stream ecosystem.