When a Nongovernmental Not-For-Profit Organization Spends Money for the Purpose

question 52

Multiple Choice

When a nongovernmental not-for-profit organization spends money for the purpose for which an external donor intended, the expense is reported as a:

• A) Decrease in net assets with donor restrictions.
• B) Decrease in net assets without donor restrictions.
• C) Decrease in current-restricted fund balance.
• D) Decrease in committed fund balance.

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Definitions:

Biome

A large community of plants and animals that occupies a distinct region defined by its climate and vegetation types, such as forests, deserts, grasslands, and tundras.

Determining Factor

A critical element or condition that significantly influences the outcome or nature of a process, situation, or decision.

Desert Plants

Flora adapted to survive in harsh desert environments, typically exhibiting water conservation features.

Succulent Leaves

Thick, fleshy leaves adapted for water storage, commonly found in plants that inhabit dry environments or soil conditions.