Commerce Exam > Commerce Questions > All expenses of a Non-profit organisation are...
Start Learning for Free
All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.
- a)Unrestricted
- b)Permanently restricted
- c)Temporarily restricted
- d)None
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
All expenses of a Non-profit organisation are reported as part of the ...
The changes in a non-profit organization's net assets are reported under three categories: unrestricted, temporarily restricted, and permanently restricted.
Unrestricted Net Assets: This category includes all the funds that a non-profit organization has without any restrictions. These funds can be used for any purpose that the organization deems necessary.
Temporarily Restricted Net Assets: These funds are restricted for a specific purpose or time. For example, if a donor donates funds for a specific project, those funds will be considered temporarily restricted until the project is completed.
Permanently Restricted Net Assets: These funds are restricted permanently, meaning they cannot be used for any other purpose than the one specified by the donor. For example, if a donor asks that their funds be used to establish a scholarship fund, those funds will be considered permanently restricted.
In the given question, it is stated that all expenses of a non-profit organization are reported as part of the changes in permanently restricted net assets. This means that if the organization has any expenses, they must be paid from funds that are not permanently restricted. Expenses cannot be paid from funds that are restricted for a specific purpose or time.
Therefore, the correct answer is option 'B', as all expenses are not reported as part of the changes in unrestricted or temporarily restricted net assets.
Unrestricted Net Assets: This category includes all the funds that a non-profit organization has without any restrictions. These funds can be used for any purpose that the organization deems necessary.
Temporarily Restricted Net Assets: These funds are restricted for a specific purpose or time. For example, if a donor donates funds for a specific project, those funds will be considered temporarily restricted until the project is completed.
Permanently Restricted Net Assets: These funds are restricted permanently, meaning they cannot be used for any other purpose than the one specified by the donor. For example, if a donor asks that their funds be used to establish a scholarship fund, those funds will be considered permanently restricted.
In the given question, it is stated that all expenses of a non-profit organization are reported as part of the changes in permanently restricted net assets. This means that if the organization has any expenses, they must be paid from funds that are not permanently restricted. Expenses cannot be paid from funds that are restricted for a specific purpose or time.
Therefore, the correct answer is option 'B', as all expenses are not reported as part of the changes in unrestricted or temporarily restricted net assets.
Free Test
FREE
| Start Free Test |
Community Answer
All expenses of a Non-profit organisation are reported as part of the ...
Permanently restricted
|
Explore Courses for Commerce exam
|
|
Top Courses for CommerceView all
Question Description
All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer?.
All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer?.
Solutions for All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice All expenses of a Non-profit organisation are reported as part of the changes in ___________________ net assets.a)Unrestricted b)Permanently restrictedc)Temporarily restricted d)NoneCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup on EduRev and stay on top of your study goals
10M+ students crushing their study goals daily