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.

---

Definitions:

Testable Hypotheses

Hypotheses that can be empirically tested through experimentation or observation, allowing for the confirmation or refutation of the proposed predictions.

Constructs

Abstract concepts or mental representations used to understand and interpret the world.

Theory

A system of ideas intended to explain something, especially one based on general principles independent of the thing to be explained.

Interaction

The reciprocal action or influence between two or more entities or substances, often leading to a particular outcome.