Which of the following is a legitimate reason for a private not-for-profit organization to have a surplus (increase in net assets)?

Question

Quizplus · Accepted Answer

Establishing working capital and retiring debt are both legitimate reasons for a private not-for-profit organization to have a surplus. Holding a surplus can help ensure a stable financial future for the organization and aid in its mission and goals. It is also important for not-for-profit organizations to maintain financial sustainability and security for their operations.

Which of the Following Is a Legitimate Reason for a Private