Define restricted and unrestricted assets. Provide examples.
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Define restricted and unrestricted assets. Provide examples. What are advantages of possessing and utilizing restricted assets to non-profit financial management?
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The solution defines restricted and unrestricted assets and provides examples.
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Restricted assets are assets that are not used to fund the normal operations of the entity. The use of the asset in the restricted assets fund is limited to the purpose of the restricted fund. Examples of restricted assets include grants that are received for special purposes, such as grants to expand research and development, or grants for an inner-city program. Other examples of restricted assets include proceeds from bond revenues that a ...
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