( D) Net Assets For its balance sheet, we come to know that it has divided its net assets into two part.
i) Unrestricted Assets It means, maximum donation and other assets which has received in cash or in-kind, are unrestricted. Organization can use any part of its mission.
( F) Temporary Restricted Assets Money and current assets can be used on some restriction. It means specific cash can be used for specific part of mission of organisation.
2nd Statement of Activities
Statement of activities is just like income and expenditure statement of Wikimedia. Everything in it is simple to understand. But as user of Wikipedia, I am interested to know the total operating cost for operating Wikipedia website. $ 10.2 millions are its total expenditures and its total revenue is $ 17.9 million. It means net surplus of $ 7.7 million which is still very very low from for-profit organisation like Google other. So, we have to come forward to donate to this great and educational notfor-profit organisation.
3rd Cash Flow Statement
For calculating cash from operation, organisation has adjusted donation of common stock and donation of equipment because both are non cash revenue part of organisation. For knowing net cash flow from operation, we need to adjust non-cash operating items. When it has made its statement of activities, all outstanding expenses are added in expenses, it means surplus on accrual basis. Now as per cash basis, it has deducted from net surplus. When it has made its statement of activities, all advance but cash expenses are deducted and now we will deduct all these advance expenses. Like this some advance and outstanding incomes have been adjusted. All other things of cash flow of this organisation is easy to understand.
Receipts and payments accounting means to record all cash and bank receipts and payments. We can maintain receipts and payments accounting by making receipts and payments account. It is prepared in non profit organisation. Its format is just like cash book of business. In debit side, we show all cash and bank receipts and in the credit side, we show all