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Donor Restrictions Play an Important Role in How Assets Should

Question 32

Multiple Choice

Donor restrictions play an important role in how assets should be classified in a nonprofit's statement of financial position. What additional information may a nonprofit provide about the liquidity of its assets and liabilities?


A) Classifying assets as current and noncurrent in the same way that companies do
B) Sequencing assets based on their nearness to cash and liabilities based on their nearness to use of cash
C) Disclosing information about liquidity, maturity, and restrictions on use in the notes to financial statements
D) All of the above

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