According to ASC 958,the statement of financial position of a private university should report the excess of the university's assets over its liabilities as:
A) fund balance.
B) unrestricted and restricted fund balance.
C) retained earnings.
D) unrestricted, temporarily restricted, and permanently restricted net assets.

Question

Quizplus · Accepted Answer

According to ASC 958, a private university's statement of financial position should report the excess of the university's assets over its liabilities as unrestricted, temporarily restricted, and permanently restricted net assets. This is because private universities typically have resources that are subject to donor restrictions or other limitations, which must be separately reported in the financial statements. Therefore, the best choice is option D, which reflects the requirement to report net assets by category of restriction.

According to ASC 958,the Statement of Financial Position of a Private