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.
Correct Answer:
Verified
Correct Answer:
Verified
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