STATEMENT OF FINANCIAL POSITION

Question 1

Purpose of statement

Answer 1

provides the financial status of the organization at a specific point in time (like the balance sheet)

Question 2

Assets - Liabilities =

Answer 2

Residual Interest (Net Assets)

Question 3

Purpose Restriction

Answer 3

donor stipulates that the resources from the donation must be spent on something specific

Question 4

Time Restriction

Answer 4

donor stipulates that the resources from the donation must be spent in a certain time period

Question 5

Permanent Restriction

Answer 5

includes endowments; the donor restriction protects the original donated amount from being spent; earnings from endowment could be with or without restrictions

Question 6

When restrictions are met

Answer 6

the amount is reclassified with a journal entry