Question

One characteristic that distinguishes other financing sources from revenues is that other financing sources:

a.None of the above
b.Have a normal credit balance.
c.Increase fund balance when they are closed at year-end.
d.Provide financial resources for the recipient fund.

Answer 1

Other financing sources have a normal credit balance and provide financial resources for the recipient fund. They do not directly affect fund balance like revenues. Examples of these sources include borrowing through banks or bonds.

Step-by-step explanation:

Other financing sources have a normal credit balance and they provide financial resources for the recipient fund. Unlike revenues, which increase fund balance when closed at year-end, other financing sources do not have a direct impact on fund balance. These sources can include borrowing through banks or bonds, selling stock, or receiving investments from early-stage investors.