Question : An ---------------- is established when a Not-for-Profit Organisation receives assets from a donor with a condition to pay a specified amount periodically to designated beneficiary or beneficiaries.
Option 1: Annuity Fund
Option 2: Endowment fund
Option 3: Government Grant
Option 4: General Fund
Correct Answer: Annuity Fund
Solution : An annuity fund is established when a Not-for-Profit Organisation receives assets from a donor with a condition to pay a specified amount periodically to designated beneficiary or beneficiaries. Hence, the correct option is 1.
Question : Examples of Restricted Fund are
Option 1: Government Grant
Option 2: Endowment Fund
Option 3: Annuity Fund, Loan Fund, Prize Fund
Option 4: All of the above
Question : ----------------- is a fund earmarked for investment in fixed assets or already invested in fixed assets. An example of a Fixed Assets Fund is a Building Fund & Amount invested in fixed assets during the year is transferred to a Capital Fund.
Option 1: Capital fund
Option 2: Fixed assets fund
Option 3: Endowment Fund
Option 4: None of the above
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