The three classes of net assets required to be presented by a private college or university are:
A) Permanently Restricted, Temporarily Restricted, and Unrestricted.
B) Reserved, Unreserved, and Undesignated.
C) Invested in Capital Assets net of Related Debt, Restricted, and Unrestricted.
D) Educational and General, and Auxiliary Enterprises

Question

Quizplus · Accepted Answer

Private colleges and universities are required to present their net assets in three classes: Permanently Restricted, Temporarily Restricted, and Unrestricted. This is in accordance with the Financial Accounting Standards Board (FASB) guidelines for nonprofit organizations. Option B refers to categories of funds, not net assets. Option C is specific to capital assets and related debt, and does not capture all types of net assets. Option D refers to functional categories, not net assets.

The Three Classes of Net Assets Required to Be Presented