300 wordsAPA formatted referencesBeing that you are an inquisitive person and wish to add to your...

Question

300 wordsAPA formatted referencesBeing that you are an inquisitive person and wish to add to your knowledge 
base, you ask your new accountant to teach you about fund accounting that is 
used in nonprofit financial accounting. Specifically, you asked her the 
following:

Explain how fund accounting principles for nonprofit organizations affect 
routine revenue type journal entries.
Do you think that nonprofits should continue to abide by the wishes of 
contributors who donated on the basis of a specific use of their donation, or, 
during tough economic times, should they ask these contributors to relax any 
restrictions they placed on the use of these funds?
In your own words, please post a response to the Discussion Board and 
comment on other postings. You will be graded on the quality of your 
postings.
The following grading criteria will apply to this 
assignment:

Grading Criteria

50%

Explain how fund accounting principles for nonprofit organizations affect 
routine revenue type journal entries.

30%

Do you think that nonprofits should continue to abide by the wishes of 
contributors who donated on the basis of a specific use of their donation, or, 
during tough economic times, should they ask these contributors to relax any 
restrictions they placed on the use of these funds?

Robert · Accepted Answer

Fund accounting helps non-profit organizations to maintain multiple activities or funds in a single 
set of records. Revenue is generally received from contributions, which include transfer of cash 
or other assets without expecting any return of service to the contributor, in non-profit 
organizations. Revenue can be recognized by deferral method or restricted fund method. 
Deferral method includes recording expenses, directly related to revenue, as and when 
incurred. Restricted fund method is a type of fund accounting, which identifies funds as 
restricted, endowment and unrestricted, on the basis of donor restriction. It recognizes 
contribution revenue in the period the contributions are received.   
Restricted contribution,

Grading Criteria
50%	Explain how fund accounting principles for nonprofit organizations affect routine revenue type journal entries.
30%	Do you think that nonprofits should continue to abide by the wishes of contributors who donated on the basis of a specific use of their donation, or, during tough economic times, should they ask these contributors to relax any restrictions they placed on the use of these funds?

300 wordsAPA formatted references Being that you are an inquisitive person and wish to add to your knowledge base, you ask your new accountant to teach you about fund accounting that is used in...

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