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Details: 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 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?
Objective: • Analyze accounting and reporting requirements for not-for-profit organizations
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