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Restricted accounts

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Can someone please provide some assistance with a question. Its for an MBA course. It need to be between 350 and 450 words or so. Explain how restricted accounts can potentially confuse a board member who does not understand fund accounting and may not grasp the meaning of a restricted account? Please see attached for further information to better assist me. Thank you so much for your help.

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Why restricted accounts might confuse people.

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Most people understand the principle of a business is to make money. Money comes into the company and bills are paid. The balance is then distributed among the members of the company that own the company. Sometimes in for profit businesses there are accounts that provide funding for specific things like building or paying pensions. However, these can be transferred, with proper procedures set by the company's policies and government, to the general fund or other accounts that need them.
For restricted funds, this is not the case and people may not be aware of the demands of the fund and how it is targeted for specific purposes. One of the most ...

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