Describe the basic accounting for private not-for-profit groups promoted by FASB Statement No. 117 including a brief description of the three net asset classes.
b. Indicate in which of the net asset classes the following transactions belong:
1. Donor makes gift to not-for profit which must be invested and maintained in perpetuity
2. Income Earned on donation noted in item #1 is restricted to certain program expenditures
3. Gains/Losses, both realized and unrealized, on donation noted in item #1. Not stipulated in donor agreement or by the law
4. Expenses paid out for programs stipulated in donor agreement relating to donation made in item #1.

Question

Describe the basic accounting for private not-for-profit groups promoted by FASB Statement No. 117 including a brief description of the three net asset classes.
b. Indicate in which of the net asset classes the following transactions belong:
 1. Donor makes gift to not-for profit which must be invested and maintained in perpetuity
 2. Income Earned on donation noted in item #1 is restricted to certain program expenditures
 3. Gains/Losses, both realized and unrealized, on donation noted in item #1. Not stipulated in donor agreement or by the law
 4. Expenses paid out for programs stipulated in donor agreement relating to donation made in item #1.

Quizplus · Accepted Answer

The Answer of Describe the basic accounting for private not-for-profit groups promoted by FASB Statement No. 117 including a brief description of the three net asset classes.
b. Indicate in which of the net asset classes the following transactions belong:
 1. Donor makes gift to not-for profit which must be invested and maintained in perpetuity
 2. Income Earned on donation noted in item #1 is restricted to certain program expenditures
 3. Gains/Losses, both realized and unrealized, on donation noted in item #1. Not stipulated in donor agreement or by the law
 4. Expenses paid out for programs stipulated in donor agreement relating to donation made in item #1.

Describe the Basic Accounting for Private Not-For-Profit Groups Promoted by FASB