Question: Net assets are classified based on the existence or absence of restrictions imposed by those who provide the funds. Three types of net assets must
Net assets are classified based on the existence or absence of restrictions imposed by those who provide the funds. Three types of net assets must be reported on a statement of financial position for a nonprofit entity. The types are distinguished according to the level of restriction imposed on them by donors. The three types are:
1. permanently r ______ ed net assets 2. temporarily restricted n a 3. unr ______ ed net assets
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