What are the operating fund? 6. What is depreciation and why is it important? 7. Why does a nonprofit need a chart of accounts? 8. When does a nonprofit pay federal taxes? 9. If only asset accounts are affected by a transaction, why is the accounting 10. Why is deferred revenue a liability? CLASS EXERGISE Class Exercise 6.1. Recording and Categorizing Transactions Use the spreadsheet shown in Table 6.4 to list the following February transactions for the Access to Learning nonprofit organization: - On February 1, the nonprofit paid $20,000 in salaries. - On February 2 , the nonprofit used $5,000 in cash to pay down its accounts payable by that amount. - On February 5, the nonprofit received $5,000 in cash from a foundation, and that donation had previously been recorded in accounts receivable. - On February 10, the executive director talked to a foundation program officer who said that the foundation would be giving a $25,000 grant to the nonprofit within the next two months. - On February 15, the nonprofit incurred another $1,000 in salaries payable. - On February 20 , the nonprofit received $5,000 in cash from pledges, - On February 22, the nonprofit received a second payment of $10,000 from the $50,000 foundation grant. - On February 23, the nonprofit conducted the workshops for $10,000 that was paid in January, and the payment had been recorded as deferred revenue. - On February 24, the nonprofit made a mortgage payment of $5,000 plus $500 in mortgage interest. - On February 25 , the nonprofit bought $500 worth of books with cash