What Are the Three Categories of Net Assets Required by the FASB

question 3

Multiple Choice

What are the three categories of net assets required by the FASB in reporting a not-for-profit organization?

• A)Unrestricted,Temporarily Restricted,and Permanently Restricted.
• B)Unrestricted,Restricted,and Fund Balance.
• C)Restricted,Permanently Restricted,and Fund Balance.
• D)Unrestricted,Temporarily Restricted,and Fund Balance.
• E)None of the above.

Learn about legal mechanisms for revoking a will and the consequences thereof.

Understand the basic concepts and types of wills, including holographic and oral wills.

Comprehend the probate process and its importance in the distribution of an estate.

Recognize the legal requirements and roles of witnesses in the validation of wills.

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Definitions:

Capitalized

The recording of an expense or cost as an asset on a balance sheet, rather than an immediate expense.

Installation Costs

Expenses associated with setting up or installing equipment, machinery, or infrastructure necessary for the operation of a business or service.

Maintenance Costs

Expenses incurred in the upkeep of assets, ensuring they continue to operate effectively without significant degradation or failure.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to improve its long-term service potential.