What Are the Three Categories of Net Assets Required by GAAP

question 13

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 the above.

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Definitions:

Educational Objectives

Goals or outcomes that educators set for learners to achieve, which guide curriculum planning and assessment.

Negative Labeling

The practice of assigning a degrading or demotivating descriptor to an individual, often based on limited information or prejudice.

Stereotyping

The act of assigning specific attributes to an individual or group based on perceived characteristics of the group they belong to, often oversimplifying complex diversities.

Deductive Reasoning

A reasoning method where an inference is drawn from the agreement of several assumptions which are typically believed to be accurate.