Question

The equity section of the balance sheet for investor-owned colleges and universities includes which of the following designations?

A) Unrestricted Net Assets, Temporarily Restricted Net Assets, and Permanently Restricted Net Assets.
B) Paid in Capital and Retained Earnings.
C) Net Investment in Capital Assets, net of related Debt; Restricted Net position; and Unrestricted Net position.
D) None of the above.

Answer 1

The equity section of the balance sheet for investor-owned colleges and universities includes the designations of Unrestricted Net Assets, Temporarily Restricted Net Assets, and Permanently Restricted Net Assets.

Step-by-step explanation:

The equity section of the balance sheet for investor-owned colleges and universities includes the designations of Unrestricted Net Assets, Temporarily Restricted Net Assets, and Permanently Restricted Net Assets (option A). These designations represent different categories of the institution's assets that have different restrictions placed on their use. Unrestricted net assets can be used for any purpose, temporarily restricted net assets have specific restrictions that will expire in the future, and permanently restricted net assets have restrictions that will never expire.