The Statement of Net Assets for a Nongovernment Nonprofit Organization

question 34

Multiple Choice

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

• A) Unrestricted net assets.
• B) Temporarily restricted net assets.
• C) Net investment in capital assets.
• D) Permanently restricted net assets.

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Definitions:

Credit

An arrangement whereby goods, services, or money is received in exchange for a promise to pay back a definite sum of money at a future date.

Supplies

Items used in the operations of a business, often consumable, such as office supplies or factory supplies, not directly part of the finished product.

Notes Payable

A financial obligation represented by a written promise to pay a certain amount of money at a future date or dates, typically carrying interest.

Historical Cost Principle

A financial reporting rule mandating that assets are documented and presented at their initial acquisition price.