Which of the Following Is a Legitimate Reason for a Private

question 136

Multiple Choice

Which of the following is a legitimate reason for a private not-for-profit organization to have a surplus (increase in net assets) ?

• A) To establish working capital.
• B) To retire debt.
• C) Both (a) and (b) above.
• D) None of the above, not-for-profits should not have surpluses.

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