NFP organizations can choose among reporting approaches contained within the framework provided by the CICA Handbook. Which of the following is not a consideration in choosing the approach?
A)Nature of the NFP's operations
B)Sources of the NFP's funding
C)The NFP's reporting objectives
D)Whether or not the NFP uses the restricted fund method of accounting

Question

Quizplus · Accepted Answer

Whether or not the NFP uses the restricted fund method of accounting is not a consideration in choosing the reporting approach as all reporting approaches can be used with either the restricted fund or the general fund method of accounting. The other factors mentioned (nature of operations, sources of funding, reporting objectives) can all impact the choice of reporting approach.

NFP Organizations Can Choose Among Reporting Approaches Contained Within the Framework