Nonprofits Are Permitted to Use Raised Funds in Any Manner

question 43

True/False

Nonprofits are permitted to use raised funds in any manner they deem acceptable.

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Definitions:

Straight-Line Rate

A method of calculating depreciation of an asset, dividing its cost by the number of years in its useful life.

Depreciation Expense

The structured spreading of the expense associated with a tangible asset across its useful life.

Double Declining-Balance Method

An accelerated depreciation method that computes an asset's depreciation at double the rate of the straight-line method over its useful life.

Straight-Line Method

A method of depreciation that allocates an equal amount of the cost of an asset over its useful life.