MANDATORY TRANSFERS Definition

MANDATORY TRANSFERS are transfers from the current (operating) fund group to other fund groups arising out of binding legal agreements related to the financing, e.g., in education: debt retirement, interest, and grant agreements with federal agencies and other organizations to match gifts and grants. Whereas non-mandatory transfers would be transfers from the current (operating) fund group to other fund groups made at the discretion of management to serve various objectives, e.g., additions to loan funds, endowment funds, plant additions, and voluntary renewal and replacement of plant.

Learn new Accounting Terms

COST PER OUTPUT see OBJECT COST.

THRIFT ASSOCIATIONS is a general term often used for mutual savings banks, savings and loan associations and credit unions.

Suggest a Term