Showing the amount and nature of donor-imposed restrictions on the statement of net assets helps financial statement readers to assess a not-for-profit organization's

Question

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Showing the amount and nature of donor-imposed restrictions on the statement of net assets helps financial statement readers to assess a not-for-profit organization's financial flexibility. Donor-imposed restrictions limit the use of the organization's resources. Therefore, disclosure of these restrictions allows readers to evaluate the organization's ability to use its resources to meet its operational needs and to respond to unexpected events.

Showing the Amount and Nature of Donor-Imposed Restrictions on the Statement