FASB standards require not-for-profit organizations to classify their resources into three categories: unrestricted, temporarily restricted, and permanently restricted.

Question

Quizplus · Accepted Answer

FASB (Financial Accounting Standards Board) standards indeed require not-for-profit organizations to classify their resources into these three categories to ensure clarity in reporting and to reflect the nature of the restrictions placed on the use of the resources.

FASB Standards Require Not-For-Profit Organizations to Classify Their Resources into Three