Question

Which of the following statements is not accurate with respect to private not-for-profits? Multiple Choice Private...

Which of the following statements is not accurate with respect to private not-for-profits?

Multiple Choice

  • Private not-for-profits report both current and long-term assets and liabilities and measure revenues and expenses using the accrual basis of accounting.

  • The financial statements of private not-profits do not report by fund.

  • The excess of assets over liabilities is termed net assets.

  • The FASB has identified two classes of net assets for not-for-profits: unrestricted and restricted.

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Answer #1

Ans:Option:4 The FASB has identified two classes of net assets for not-for-profits: unrestricted and restricted. is Correct Answer

Explanation:

The following statements are accurate with respect to private not-for-profits

  • Private not-for-profits report both current and long-term assets and liabilities and measure revenues and expenses using the accrual basis of accounting.
  • The financial statements of private not-profits do not report by fund.
  • The excess of assets over liabilities is termed net assets.
  • The FASB has identified three classes of net assets: unrestricted, temporarily restricted, and permanently restricted. To be restricted, resources must be restricted by donors or grantors; internally designated resources are considered unrestricted.

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