What Are the Three Categories of Net Assets Required by GAAP

question 60

Multiple Choice

What are the three categories of net assets required by GAAP 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 these.

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Definitions:

Preoperational Stage

In Piaget’s theory, the second major stage of cognitive development, in which symbolic thought expands but children cannot yet use logic.

Sensorimotor Stage

This is the first stage of Jean Piaget's theory of cognitive development, where infants learn about the world through their senses and actions.

Concrete Operations

A stage in Piaget's theory of cognitive development where children aged 7-11 start thinking logically about concrete events but still struggle with abstract concepts.

Formal Operations

A stage in Piaget's theory of cognitive development (beginning around age 12) where individuals develop the ability to think about abstract concepts and logically test hypotheses.