Author Question: A not-for-profit organization uses fund accounting. Which of the following transactions is likely to ... (Read 110 times)

soccerdreamer_17 · **on:** Jul 5, 2018

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

Question 2

When using a revenue journal
a. separate Fees Earned and Accounts Receivable columns are included
b. both cash sales and sales on account are recorded in the journal
c. revenues are normally recorded when the company sends customer invoices
d. postings to customer accounts are done at month's end