Generally speaking, not-for-profit organizations record and measure transactions and events in the same manner as commercial enterprises. They do, however, differ from commercial enterprises in two important ways. Which of the following is one of those differences?
A. Commercial enterprises use accrual accounting and not-for-profits use modified accrual accounting.
B. Donors frequently impose restrictions on the use of donated resources.
C. Not-for-profit organizations receive considerable amounts of resources from the government.
D. Not-for-profit organizations do not record revenues until money is actually received.
Answer: B
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