According to SFAC No. 4, "earnings" is the indicator of a non-business organization's performance that is comparable to "income" in the profit sector.

Question

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SFAC No. 4 states that for non-business organizations, the equivalent indicator of performance to "income" in the for-profit sector is "changes in net assets," not "earnings." Earnings are specific to for-profit entities and refer to the residual amount after deducting expenses from revenue.