The Statement of Net Assets for a Nongovernment Nonprofit Organization

question 35

Multiple Choice

The statement of net assets for a nongovernment nonprofit organization would report the following components of net assets

• A) Unrestricted net assets and net assets with donor restrictions.
• B) Net assets without donor restrictions and temporarily restricted net assets.
• C) Net investment in capital assets, restricted net assets, and unrestricted net assets.
• D) Net assets without donor restrictions and net assets with donor restrictions.

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Definitions:

Consolidation

Consolidation refers to the process of combining assets, liabilities, and other financial items of two or more entities into one.

Autonomy

The capacity to make decisions and act independently, free from external control or influence.

Legal Systems

The comprehensive framework of rules and institutions within a society that governs the conduct of its members and the resolution of disputes.

External Environments

The external factors, conditions, and forces outside an organization that can affect its activities and performance, including economic, legal, and technological influences.