FASB Standards Require Not-For-Profit Organizations to Classify Their Resources into Three

question 33

True/False

FASB standards require not-for-profit organizations to classify their resources into three categories: unrestricted, temporarily restricted, and permanently restricted.

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Definitions:

Limitations Period

A set period of time within which a legal claim must be filed or be permanently barred.

Breach

A violation or infringement of a law, obligation, standard, or agreement.

Commercially Impracticable

A doctrine where parties are relieved from their contractual duties when events have occurred making performance excessively difficult or costly.

Unforeseen Shortage

A sudden and unexpected lack of necessary supplies or resources.