Author Question: (Discussion problem on fund accounting) Discuss the nature and purpose of fund accounting. ... (Read 87 times)

RRMR · **on:** Jul 5, 2018

(Discussion problem on fund accounting)

Discuss the nature and purpose of fund accounting.

What will be an ideal response?

Question 2

______________________________ are older systems that may exist in an organization when a newer system, such as an ERP, is installed.
Fill in the blank(s) with correct word

peter · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

Fund accounting is the practice under which an organization segregates its assets, liabilities, and net position into separate accounting entities, called funds, based on legal restrictions, donor-imposed restrictions, or other regulations. Each fund has a set of self-balancing accounts that records the unique assets of that fund and the claims against those assets. Separate financial statements may be prepared for each fund. The purpose of fund accounting is to help ensure that resources are expended only for their authorized purposes and in compliance with applicable restrictions.

Answer to Question 2

Legacy systems