CAF-1 · Chapter 13 · Question 2 of 15
In the financial statements of an NPO, what is the equivalent of 'Equity' or 'Retained Earnings'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Net Assets or Accumulated Fund.
Explanation
In an NPO, the residual interest in assets after deducting liabilities is referred to as Net Assets or the Accumulated Fund, rather than equity.
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