Prior to ASU 2016-14, What Are the Three Categories of Net

question 13

Multiple Choice

Prior to ASU 2016-14, what are the three categories of net assets required by GAAP in reporting of a not-for-profit entity?

• A) Unrestricted, Temporarily Restricted, and Permanently Restricted.
• B) Unrestricted, Restricted, and Fund Balance.
• C) Restricted, Permanently Restricted, and Fund Balance.
• D) Unrestricted, Temporarily Restricted, and Fund Balance.
• E) None of these answer choices are correct.

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Definitions:

Arterioles

Small branches of arteries leading into capillaries, responsible for regulating blood flow to specific areas of the body by constricting or dilating.

Lymphatic Capillaries

Tiny, thin-walled vessels located in the spaces between cells throughout the body, involved in the absorption of fluid and its movement through the lymphatic system.

Basement Membrane

A thin, dense layer of extracellular matrix that separates epithelial or endothelial cells from the underlying connective tissue, providing support and anchorage.

Blood Capillaries

The smallest blood vessels in the body, responsible for the exchange of oxygen, carbon dioxide, and other substances between blood and tissues.