02.02 Statement of Financial Position

Question 1

What is the purpose of the statement of financial position?

Answer 1

The purpose of the statement of financial position is to provide the financial status of the organization at a specific point in time.

Question 2

Must net assets with donor restrictions be reported separately from those that are not restricted?

Answer 2

Yes.

Question 3

What are net assets without donor restrictions?

Answer 3

Resources of the NPO that are available for the general use of the entity and can include assets set aside by the board of trustees, including a board-designated endowment fund, since a true restriction must come from an outside donor.

Question 4

What are net assets with donor restrictions?

Answer 4

Resources of the NPO that are subject to donor-imposed restrictions.

Question 5

What are the two types of restrictions on net assets with donor restrictions?

Answer 5

Temporary (purpose or time)
Permanent (endowment)