Private not-for-profit health care organizations include what categories in the equity section of the Statement of Net Assets?

Question

Quizplus · Accepted Answer

Private not-for-profit health care organizations generally categorize their equity section into unrestricted, temporarily restricted, and permanently restricted funds, depending on the donor or grantor's restriction on the use of funds. This classification helps in determining the availability and utilization of funds for different purposes. Paid-in capital and retained earnings (Option A) are generally used in for-profit establishments. Net investment in capital assets, restricted, and unrestricted (Option C) is a classification used for governmental health care organizations. Operating, investing, financing (Option D) are categories used in the statement of cash flows to disclose the cash inflows and outflows from operating activities, investing activities, and financing activities.

Private Not-For-Profit Health Care Organizations Include What Categories in the Equity