The Statement of Financial Position for a Private Not-For-Profit College

question 63

Multiple Choice

The statement of financial position for a private not-for-profit college should show separate dollar amounts for

• A) Unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.
• B) All accounts in its equity section.
• C) Unrestricted net assets only.
• D) Unrestricted net assets and temporarily restricted net assets.

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Definitions:

Balance

The amount of money held in a financial account at any moment, reflecting all transactions.

Account

A record summarizing all the transactions pertaining to a single item in the accounting equation.

Lockbox Services

Bank-provided services that expedite the collection and processing of account receivable payments by having them sent directly to a secure post office box.

Collection Funds

Monies that are being gathered or have been gathered for a specific purpose, often related to financial transactions or payments.