Temporarily restricted net assets refers to those assets on which certain restrictions are imposed by the donor regarding its usage, which after a certain period of time or after fulfillment of specified conditions shall be lifted. However, permanently restricted net assets are those assets which are restrictive in nature in the sense that it could be used only for the purposes specified by the donor and no other purpose. The amount to be disclosed in the statement of activities under the classification of temporarily and permanently restricted net assets.

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 19.8.10E

To determine

Introduction: Temporarily restricted net assets refers to those assets on which certain restrictions are imposed by the donor regarding its usage, which after a certain period of time or after fulfillment of specified conditions shall be lifted. However, permanently restricted net assets are those assets which are restrictive in nature in the sense that it could be used only for the purposes specified by the donor and no other purpose.

The amount to be disclosed in the statement of activities under the classification of temporarily and permanently restricted net assets.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Internal control refers to the processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. These controls are designed to provide reasonable assurance that the organization achieves its objectives in operational efficiency, financial reporting reliability, and compliance with laws and regulations. Internal control is a comprehensive system that includes a variety of checks and balances, such as segregation of duties, authorization and approval processes, reconciliations, and physical security measures. It is an integral part of an organization's governance framework, helping to safeguard assets, improve operational efficiency, and ensure accurate and timely financial reporting. Respond to the above post

I need the correct answer to this general accounting problem using the standard accounting approach.

You are a team of accounting consultants hired by the company VinGrenDom Ltd., a regional utility and manufacturing firm expanding into the Eastern Caribbean. The Board of Directors is requesting an accounting report that addresses three critical areas in their financial statements. Part A: Working Capital 1. Define working capital and explain its importance in financial health and liquidity management. 2. Assess how the matching concept and accrual basis affect the reporting of current assets and liabilities. 3. Using a hypothetical balance sheet (you may create one), identify at least 5 current assets and 5 current liabilities and analyze how changes in these elements affect liquidity ratios. 4. Recommend at least two strategies VinGrenDom Ltd. can implement to optimize working capital.