Which of the following statements about a not-for-profit firm's fund capital is most correct?

Question

Quizplus · Accepted Answer

Fund capital in not-for-profit organizations is analogous to equity capital in investor-owned firms. It represents the net assets of the organization, which can be built through excess of revenues over expenses, donations, and other sources, and it can change over time. Unlike equity in for-profit entities, it does not imply ownership but rather the funds that are available for the organization to use in pursuit of its mission.

Which of the Following Statements About a Not-For-Profit Firm's Fund