The Board of Directors for a Nongovernmental Not-For-Profit Organization Decided

question 30

Multiple Choice

The board of directors for a nongovernmental not-for-profit organization decided to designate $20,000 each year for the next three years to fund a special research project it was planning to conduct at the end of the three-year period.  How would these board-designated resources be reported on the statement of financial position?

• A) Net assets with donor restrictions.
• B) Net assets without donor restrictions.
• C) Internal payable.
• D) The resources would not be reported on the statement of financial position.

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Definitions:

Sales Values

The total revenue generated from goods or services sold by a business.

Direct Costs

Expenditures directly traceable to the production of specific goods or services, such as raw materials and labor.

Gross Margins

The difference between revenue and cost of goods sold divided by revenue, expressed as a percentage, indicating the financial health and profitability of a business.

Value Basis

The underlying worth of an asset from which sale prices or depreciation is derived.