Distinguish Not-For-Profit Organizations from Entities in the Government and Commercial

question 73

Essay

Distinguish not-for-profit organizations from entities in the government and commercial sectors of the U.S. economy.

---

Definitions:

Depreciation

A method of allocating the cost of a physical or tangible asset over its expected usable life to account for decreases in value over time.

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Asset Cost

The total amount incurred to acquire an asset, including purchase price and all expenditures necessary to bring the asset to its intended use.