The FASB Requires the Statement of Financial Position Prepared by a Not-For-Profit

question 64

True/False

The FASB requires the statement of financial position prepared by a not-for-profit organization to report net assets in three categories: net assets without donor restrictions, net investment in capital assets, and net assets with donor restrictions.

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Definitions:

Association

An organized group of people who share a common interest, purpose, or profession.

Causation

A relationship where one event (the cause) directly leads to the occurrence of another event (the effect).

Ceteris Paribus

A Latin term used in economics to mean "all other things being equal," isolating one economic variable to analyze its effect.

Normative Economics

A branch of economics that expresses value judgments about economic fairness or what the economy ought to be like, focusing on policy prescriptions and outcomes.