Question

The three classes of net assets reported for a private not-for-profit organization include all of the following except

A) Unrestricted net assets.
B) Temporarily restricted net assets.
C) Capital restricted net assets.
D) Permanently restricted net assets.

Answer 1

The three classes of net assets reported for a private not-for-profit organization are unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.

Step-by-step explanation:

The three classes of net assets reported for a private not-for-profit organization include:

1. Unrestricted net assets: These are funds that are not subject to any donor-imposed restrictions and can be used by the organization for any purpose.
2. Temporarily restricted net assets: These are funds that are subject to donor-imposed restrictions for a specific purpose or time period.
3. Permanently restricted net assets: These are funds that are subject to donor-imposed restrictions that cannot be lifted and must be maintained in perpetuity by the organization.

The correct answer, therefore, is C) Capital-restricted net assets, as this is not one of the classes of net assets reported for a private not-for-profit organization.