Governments and not-for-profits employ a system of accounting known as fund accounting.

Name: Governments and not-for-profits employ a system of accounting known as fund accounting.
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Question

Quizplus · Accepted Answer

Fund accounting is primarily used by governments and not-for-profit organizations to track the inflow and outflow of funds for specific purposes or programs. It differs from traditional accounting in that it focuses on the use and restrictiveness of funds rather than profit and loss. Therefore, the statement is true.

Governments and Not-For-Profits Employ a System of Accounting Known as Fund