Question

In a private NFP organization's statement of financial position, how is cash received from a capital...

  1. In a private NFP organization's statement of financial position, how is cash received from a capital campaign, to be used to build facilities, reported?

    A.

    Combined with the unrestricted cash balance
    B.

    Capital assets
    C.

    Investments
    D.

    Restricted cash, separately from unrestricted cash
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Answer #1

Answer : Option D , restricted cash, separately from unrestricted cash.

Explanation :

i)Unrestricted funds are those items that have no donor-imposed restrictions.

ii)Temporarily Restricted funds are those items that were received with a donor-imposed restriction that will be satisfied in the future (generally within one year). The donor’s restriction may be for a particular purpose or program or for use in a specified time period.

iii)Permanently Restricted items are those received with a donor-imposed restriction that states that the donation must be maintained permanently, but may permit the organization to use up or expend part or all of the income derived from the asset.

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