12. In accounting for loan funds, revenue is recorded when the: A) B) C) D) students graduate. loan is made to students. loan is repaid by students. contribution is received. 13. Which of the following statements related to pledges is incorrect? A) Pledges are generally enforceable contracts B) Pledges are signed commitments to contribute specific amounts of money on a C) Pledges are recorded as revenues when a promise to give is nonrevocable and D) All of these are correct. future date or in installments. unconditional 14. Fixed assets and noncurrent liabilities are accounted for in the records of: A) B) C) D) expendable funds proprietary funds both governmental and expendable funds. governmental funds 15. Which of the following groups of not-for-profit entities must use fund accounting to be in conformity with GAAP? A) Governmental, No; Nongovernmental, No B) Governmental, Yes; Nongovernmental, No C) Governmental, No; Nongovernmental, Yes D) Governmental, Yes; Nongovernmental, Yes 16. The entry to close appropriations, expenditures, and encumbrances accounts includes a debit to: A) Both Appropriations and Encumbrances B) Expenditures C) Encumbrances. D) Appropriations. 17. Encumbrances would NOT appear in which fund? A) Special revenue B) General C) Enterprise D) Capital projects