Previously a local private-sector charity received a $1 million gift, the income from which was restricted to support activities for senior citizens. During the current year the endowment earned $40,000 of interest revenues, of which the charity designated $30,000 to support senior citizen activities.
-On its year-end statement of financial position, the charity would report non restricted net assets of:

Question

Previously a local private-sector charity received a $1 million gift, the income from which was restricted to support activities for senior citizens.  During the current year the endowment earned $40,000 of interest revenues, of which the charity designated $30,000 to support senior citizen activities. 
-On its year-end statement of financial position, the charity would report non restricted net assets of:

Quizplus · Accepted Answer

Non-restricted net assets are the total assets of the charity minus any liabilities. In this case, the charity has total assets of $1.04 million and liabilities of $1 million, so its non-restricted net assets are $40,000.

Previously a Local Private-Sector Charity Received a $1 Million Gift