Unrealized Gains on the Investment Portfolio of a Not-For-Profit Organization

question 10

Multiple Choice

Unrealized gains on the investment portfolio of a not-for-profit organization are

• A)Not recognized.
• B)Reported in the net asset section of the balance sheet.
• C)Depends on whether the gains relate to trading,available-for-sale,or held-to-maturity assets.
• D)Reported on the statement of activities.

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Definitions:

Produced

Refers to goods that have been completed through the manufacturing process and are ready to be sold or distributed.

Sold

The completed action of transferring ownership of goods or services to a buyer in exchange for payment.

Mixed Cost

Mixed cost refers to a cost that contains both variable and fixed cost components, which vary depending on the level of activity.

Utility Costs

Expenses incurred for essential services such as electricity, water, gas, and sewage.