A Difference in Reporting on the Balance Sheet for a for Profit

question 9

Multiple Choice

A difference in reporting on the balance sheet for a for profit business and a Not for profit entity is that current assets and current liabilities are reported in the for profit sector and the parallel accounts in not for profit are found in:

• A)​Deferred accounts
• B)​Fund accounts
• C)​Donations
• D)​Net assets

---

Definitions:

Primary Current

The current flowing through the primary winding of a transformer or another electrical device intended for initial energy transformation.

Secondary

The coil in a transformer that receives energy from the primary coil through electromagnetic induction, thereby transferring energy from the primary to the load.

Laminated Construction

A manufacturing technique used in electrical machines and transformers to minimize eddy current losses by stacking thin sheets of metal together.

Thin Sheets

Flat, slender pieces of material of small thickness compared to its other dimensions.