To what extent do organizations that use fund accounting also report on the entity as a whole?
A)Organizations that use fund accounting are not required to report on the entity as a whole
B)Organizations that choose to report on the entity as a whole are not permitted to use fund accounting for internal purposes
C)Organizations that use fund accounting are required to report on the entity as a whole
D)Organizations that use fund accounting have the option of reporting either on funds or on the organization as a whole

Question

Quizplus · Accepted Answer

Organizations that use fund accounting, particularly in the public and nonprofit sectors, are required to provide a comprehensive view of their financial position and activities. This includes reporting on the entity as a whole, in addition to the separate fund accounts, to give a complete picture of the organization's financial health and operations. This requirement ensures transparency and accountability, allowing stakeholders to understand the overall financial status of the organization.

To What Extent Do Organizations That Use Fund Accounting Also