Question

depreciation measures the loss in value of capital assets.

question 7

fund balance is a term used by not-for-profit or government organizations.
true
false

question 8

Explanation:

🆕 New Concept Discovered: Fund Accounting
The unique way non-business entities track resources.

Step 1: Define "Fund Balance"

In commercial (for-profit) accounting, the difference between assets and liabilities is referred to as owner's equity or shareholders' equity.

However, government entities and not-for-profit organizations do not have owners. Instead, they use fund accounting to track resources designated for specific purposes. In this context, the net difference between assets and liabilities is referred to as the fund balance (or net assets).

Step 2: Evaluate the Statement

The statement asserts: "Fund balance is a term used by not-for-profit or Government organizations."

Since "fund balance" is the standard term used in governmental and non-profit financial reporting to represent accumulated net resources, this statement is correct.

Answer:

True