The Board of Directors of a Nongovernmental Not-For-Profit Organization Voted

question 10

Multiple Choice

The board of directors of a nongovernmental not-for-profit organization voted to designate $100,000 of its unrestricted net assets to be used for its permanent endowment. Which of the following best describes the accounting and financial reporting implications of this action?

• A) The net assets are still considered unrestricted.
• B) The net assets are now considered temporarily restricted.
• C) The net assets are now considered permanently restricted.
• D) Unrestricted net assets will decrease in total.

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Definitions:

Interpersonal Communication

The process of exchanging information, feelings, and meanings between people through verbal and non-verbal methods.

Interpersonal Communication

Interpersonal communication is the process of exchange of information, feelings, and meanings between two or more people through verbal and/or non-verbal methods.

Channels

Mediums through which communication, information, or goods are delivered or distributed, such as television channels, social media platforms, or shipping channels.

Receiver

The individual or entity that gets or accepts something sent, given, or communicated to them.