The Line Item, Net Assets Released from Restrictions, May Be

question 24

Multiple Choice

The line item, net assets released from restrictions, may be reported in a nongovernment, not-for-profit organization's statement of activities in which classifications?

• A) Changes in unrestricted net assets only.
• B) Changes in unrestricted net assets and changes in temporarily restricted net assets.
• C) Changes in unrestricted net assets and changes in permanently restricted net assets.
• D) Changes in unrestricted net assets, changes in temporarily restricted net assets, and/or changes in permanently restricted net assets.

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Definitions:

Desired Outcomes

Refers to the specific goals or results that an individual or organization aims to achieve.

Resource Availability

The extent to which necessary resources, such as materials, labor, and capital, are accessible for the production process or project execution.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Optimal Choices

Decisions or selections that yield the best possible outcome or benefit given the available resources and constraints.