Revenues must be presented separately in the Statement of Activities for the three classes (unrestricted,temporarily restricted,and permanently restricted).

Question

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According to Generally Accepted Accounting Principles (GAAP), revenues must be presented separately for each class of net assets in the Statement of Activities: unrestricted, temporarily restricted, and permanently restricted. This is to ensure transparency in reporting and to distinguish between funds that can be used immediately and those that have restrictions on their use.

Revenues Must Be Presented Separately in the Statement of Activities