An Example of an Increase in Net Assets for a Not-For-Profit

question 23

Multiple Choice

An example of an increase in net assets for a not-for-profit organization that would be labeled revenue rather than support is:

• A) An unconditional promise to give.
• B) Investment income.
• C) A restricted gift.
• D) An allocation of funds from the local United Way organization.

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Definitions:

Fewer Resources

A decrease in the availability of inputs required for production or consumption, often leading to increased competition or prices.

Production Possibility Frontier

A graph that shows the highest possible mix of two goods that can be made with the existing resources and technology.

Opportunity Cost

The price paid for not choosing the next most favorable option when making a decision or opting for one alternative over another.

Baking Technique

A method or process involved in cooking food using prolonged dry heat, typically in an oven, without direct exposure to flames.