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A Not-For-Profit Organization Uses Fund Accounting

Question 37

Multiple Choice

A not-for-profit organization uses fund accounting.Which of the following transactions is likely to be accounted for in a Restricted Current Fund?


A) a donation of $10,000 that may be used for any purpose designated by the trustees
B) a donation of $50,000 that must be used to purchase a new building
C) a donation of $500,000 that must be kept intact in perpetuity
D) a grant of $30,000 that must be used to operate a day-care center for one year

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