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:

Inequality

The unequal distribution of resources, opportunities, rights, and power among individuals or groups in a society.

Poverty

A socioeconomic condition characterized by a lack of basic resources and financial means necessary for a minimum standard of living.

Globalization

The process by which businesses, technologies, or philosophies spread worldwide, leading to increased interconnectedness and interdependence among nations.

Local Culture

Refers to the practices, beliefs, and objects that are unique and meaningful to a specific community or group of people within a smaller geographical area.