a.Describe the basic accounting for private not-for-profit groups promoted by the FASB 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 a cash 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

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The Answer of a.Describe the basic accounting for private not-for-profit groups promoted by the FASB 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 a cash 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.

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