The statement of financial position for a private not-for-profit college should show separate dollar amounts for
A) Unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.
B) All accounts in its equity section.
C) Unrestricted net assets only.
D) Unrestricted net assets and temporarily restricted net assets.

Question

Quizplus · Accepted Answer

Private not-for-profit colleges should show separate dollar amounts for unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets in their statement of financial position. This is important for transparency and accountability, as it allows stakeholders to see how much of the college's resources are available for general use versus those that are restricted for specific purposes. Option B is incorrect as not all accounts in the equity section need to be separately reported. Option C is also incorrect as it does not provide enough information. Option D is not ideal as it does not differentiate between temporarily and permanently restricted assets.

The Statement of Financial Position for a Private Not-For-Profit College